multi-village pooling project in indonesia: handbook for community

Multi-Village Pooling Project in Indonesia

WATER AND SANITATION PROGRAM: HANDBOOK

The Water and Sanitation Program is a multi-donor partnership administered by the World Bank to support poor people in obtaining affordable, safe, and sustainable access to water and sanitation services.

Handbook for Community-Based Water Supply Organizations

October 2011

Ministry of Public Works

National Development Planning Agency

Th e Water and Sanitation Program

Th e Water and Sanitation Program (WSP) is a multi-donor partnership created in 1978 and administered by the World Bank to support poor people in obtaining aff ordable, safe, and sustainable access to water and sanitation services. WSP provides technical assistance, facilitates knowledge exchange, and promotes evidence-based advancements in sector dialogue. WSP has offi ces in 24 countries across Africa, East Asia and the Pacifi c, Latin America and the Caribbean, South Asia, and in Washington, DC. WSP’s donors include Australia, Austria, Canada, Denmark, Finland, France, the Bill and Melinda Gates Foundation, Ireland, Luxembourg, Netherlands, Norway, Sweden, Switzerland, United Kingdom, United States, and the World Bank. For more information, please visit www.wsp.org.

WSP reports are published to communicate the results of WSP’s work to the development community. Th e fi ndings, interpretations, and conclusions expressed herein are entirely those of the author and should not be attributed to the World Bank or its affi liated organizations, or to members of the Board of Executive Directors of the World Bank or the governments they represent. Th e World Bank does not guarantee the accuracy of the data included in this work. Th e boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

© 2011 Water and Sanitation Program

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Multi-Village Pooling Project (MVP) in Indonesia

Handbook for Community-Based Water Supply Organizations

Written by Jemima Sy (Water and Sanitation Specialist), Team Leader for Multi-Village Pooling Project, Water and Sanitation Program with contributions from Leila Elvas (Senior Water and Sanitation Specialist) and Deviariandy Setiawan (MVP Project Coordinator) and inputs from Rudi Andrian (Engineer), Rudy Jusdian (Finance Specialist), Silva Liem (Organizational Development Specialist), Tatit Palgunadi (Engineer), Novalinda Ramdhani (Organizational Development Specialist) and August Restiawan (Finance Specialist). Alfred Lambertus conducted a peer review on the book.

Th is handbook was inspired by the eff orts and experiences of staff of local governments, non-government support agencies and community-based water organizations in the fi ve districts that participated in MVP:

Bandung CianjurIndra M. (Head)Deddy Mulyadi (Water Supply Section Head)PudjadiRuhiyatRukmansyah

Dispertasih Kusnadi BappedaDadang Umar (Division Head)Iden Aringga (Water Supply Section Head)Asep SudradjatMuhammad

Dinas Tata Ruang & Permukiman

Cakra Amiyana Bappeda Hasanudin BPSAB KademanganKusnar Nazsir BPSAB Ciburial Ece Hasanudin

Yayat HidayatBPSAB Tirta Manggala

Adam H.S. BPSAB PanenjoanHelen LokWawan GunawanKosasih PadmakusumahBedih SupriadiLina RozanaSuhaeti (Adhe)

Yayasan Pesat D. Hidayat BPSAB Tirta Jagabaya, Cikidangbayabang

LamonganPuguh Setya W. BappedaHadi Broto (Head)Widi SiswonoZulkhah

Dinas Pekerjaan Umum, Cipta Karya

Kasdan (Head)KiswantoM. MauludinAtekan AndrionoM. Safi kNur SupriyantoPatah Wijaya

Asosiasi Banyu UripBlitarImam Hanafi BappedaSumantri (Head)SiswantoDwi Pudyono

Dinas Lingkungan Hidup & Permukiman

Hariyanto (Head)Frans HehanussaAhmad BudiantoWanuh AsmoyoHari BadrusAndreas SuwitoSuraniBasuki Siswoyo

Asosiasi Badan Pengelola Air Bersih

MalangAnwar SupraptoRenung Rubiyatadji

Dinas Cipta Karya dan Tata Ruang

Sayid Muhammad (Head)Jauhari Fatkhur RidloA.ZayyadiNardiSugianiM. QosimM. SukronSibaweh

Asosiasi Badan Pengelola Air Bersih & Sanitasi

2 Water and Sanitation Program

Water and Sanitation Program with the Ministry of Public Works and the National Development Planning Agency

Table of Contents

Additional Materials and References Included in the Accompanying CD 5

Foreword 6

1. Background 7

2. Introduction 8 2.1. Purpose 8 2.2. About the Multi-Village Pooling Project 8 2.3. Topics and Tools in the Book 8

3. Institutional Framework for Community-Managed Water Supply 10 3.1. Who is Responsible for Providing Water Supply to the People? 10 3.2. How can CBOs be Involved in Water Supply Service? 10 3.3. Residual Authority of the State and Local Governments 11 3.4. Are CBOs Part-Owners or Strictly Operators of Water Supply Systems? 11 3.5. Why is it Important to Distinguish between Owners and Operators? 11

4. Regulatory Requirements to Establish a Water Supply Service Organization 14 4.1. Must be a Legal Entity; Recognized Forms of Community Organizations 14 4.2. Must Have a License to Operate 17 4.3. Must Have a Permit to Extract Raw Water 20 4.4. Must Have Legal Access to Land 20 4.5. Continuing Obligation to Ensure Water Quality 20 4.6. Continuing Performance Review and Reporting 21

5. Organizational Structures and Management Systems of CBOs 22 5.1. What Makes Up an Organization? 22 5.2. Laying the Basis for the People, Processes and Practices of the CBO 23 5.3. Summary of Systems of CBO Accountability 26

6A. Components of a Small Piped Water Supply System 28 6.1. What are the Components of a Water Supply System? 28 6.2. Selecting Water Sources 29 6.3. Estimating Quantity of Water Demand 31 6.4. Different Ways to Measure the Capacity of the Water Source 32 6.6. Managing Water Quality 38 6.7. Design of Water Transmission and Distribution 38

6B. Basic Operations and Maintenance 45 6.8. Financing Operations, Maintenance and Emergency Repairs 45 6.9. Most Frequent Problems with the Water Intake 46 6.10. Most Frequent Problems with the Spring Catchment (Bronkaptering) 46 6.11. Most Frequent Problems with the Deep Well, Pump and Pump House 48 6.12. Most Frequent Problems with the Reservoir 49 6.13. Electrical Safety and Most Frequent Problems with Generators 50 6.14. Most Frequent Problems with Water Meters 50

7. Financial Recording and Reporting System 51 7.1. Organizational Structure and Internal Controls 51 7.2. General Flow and Terminologies 52 7.3. Billing Procedures 56

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Multi-Village Pooling Project in IndonesiaHandbook for Community-Based Water Supply Organizations

7.4. Collection Procedures 57 7.5. Payment Procedures 58 7.6. Financial Reports Preparation Procedures 58

8. New Investment Project for Community Water Supply 82 8.1. Technical Planning Phase 82 8.2. Financial Planning Phase 84 8.3. Implementation Phase 88

Appendices 91 Appendix 1: Sample License to Operate 91 Appendix 2: Model Articles of Organization: Cooperative 93 Appendix 3: Blank Forms 113

List of Figures

Figure 1: Rural Water Supply Access 7Figure 2: Responsibility for Water Supply and Sanitation Development (PP 16/2005) 10Figure 3: Examples of Ownership and Operations Structures: Fully Public Provision to Fully Private Provision 11Figure 4: Functional Areas of a Water Supply Enterprise 23Figure 5: Strengths-Weaknesses-Opportunities-Threats Strategies 24Figure 6: Suggested Organization Chart of CBOs 25Figure 7: Simple Water Supply System (Combined Pump and Gravity) 28Figure 8: Ground Water Formation 29Figure 9: Spring Formation 30Figure 10: Components of a Jet Pump 30Figure 11: Jet Pump System 30Figure 12: Basic Pump Operating Stages 30Figure 13: Flow Measurement Using Volumetric Method 33Figure 14: Weir Method 34Figure 15: Intake Structure 37Figure 16: Roughness Coeffi cients (C) for Different Types of Pipes 38Figure 17: Drawing of Distribution System 43Figure 18: Bronkaptering 46Figure 19: Organizational Structure and Internal Controls 52Figure 20: From Planning to Implementation 84

List of Boxes

Box 1: Partnership between Koperasi Warga Pakar Peduli (Kopali) and Ciburial Village Administration 12Box 2: Where Can CBOs Go to for Assistance? 13Box 3: Take it to the Board 26Box 4: It Pays to Have Strong Community Participation 27Box 5: Solving Problems Together 47Box 6: What Is 1 m3? 86Box 7: When the Cost of Operations and Maintenance is Beyond Community Affordability 88

List of Tables

Table 1: Rights and Responsibilities of Owners vs Operators 12Table 2: Legally Recognized Forms of Water Entities 15Table 3: Content List of a License to Operate 18Table 4: An Example of Vision-Mission Setting by CBO Federations 23



Table 5: SWOT Analysis Illustration 24Table 6: Systems of Accountability 27Table 7: Selecting Sources of Raw Water 29Table 8: Customer Profi les 31Table 9: Measuring Water Source Capacity 32Table 10: Raw Water Treatment Processes 38Table 11: Example of Calculation on Rates of Flow Given Different PVC Pipe Sizes (Slope = 1.14) 40Table 12: Hazen Williams Table on Pressure Loss 40Table 13: Hazen Williams Table on Pressure Loss 41Table 14: Hazen Williams Table on Pressure Loss (PVC 100-Meter Pipe) 41Table 15: Hazen Williams Table on Pressure Loss 42Table 16: Capacity of Pipes 43Table 17: Example of Charting Hourly Flow Rates for Storage 44Table 18: Common Problems and Maintenance for Water Intake 46Table 19: Common Problems and Maintenance of Deep Well and Pump 48Table 20: Common Problems and Maintenance of Pump House 49Table 21: Common Problems and Maintenance of Reservoir 49Table 22: Common Problems and Maintenance of Electrical Parts 50Table 23: Common Problems and Maintenance of Generators 50Table 24: Common Problems and Maintenance of Water Meters 50Table 25: Financial Defi nition and Terms Used 53Table 26: Example of Developing Unit Prices for Construction Components 83Table 27: Financial Decision Making 84Table 28: Process for Calculating Tariffs 85Table 29: Willingness to Pay 86Table 30: Example of Calculation of Financial Internal Rate of Return 87Table 31: Construction Supervision Sheet 89Table 32: Budget Supervision 90

List of Illustrations

Illustration 1: A Small Scale Water Facility in Indonesia 9Illustration 2: Water Catchment 37Illustration 3: Surface Water Intake Facility 46Illustration 4: Spring Catchment 46Illustration 5: A Typical Pump House in Rural Area 48Illustration 6: An Improved Pump House 48Illustration 7: Reservoir 49Illustration 8: Electrical Safety 50

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Additional Materials and References Included in the Accompanying CD

Multi-Village Pooling Project, “Guidelines for Performance Monitoring of Community-Based Water Supply Organizations” (2009)

Multi-Village Pooling Project, “Model Local Government Regulation on Water Supply System Operations by Community-Based Water Supply Organizations” (2010)

Hartmann and Unger, “Picture Book: Th e Good and Th e Bad Infrastructure: Water Supply and Sanitation” (2006)

PAMSIMAS, “Manual Teknis: Pengoperasian dan Pemeliharaan Prasarana dan Sarana Air Minum dan Sanitasi” (2009)

PAMSIMAS, “Manual Teknis: Jenis dan Sumber Air Baku Serta Pemanfaatannya” (2009)US Environmental Protection Authority, EPANET



Foreword

Water is a basic need for human live and must be available in adequate and suffi cient quantity and quality, as mandated in Law 7/2004 on water resources. To ensure that water needs are met, provision of water supply is regulated in Government Regulation 16/2005 on Development of Water Supply Systems. Th e objective of water supply development is in line with the target of the Millennium Development Goal (MDG) for water supply sub sector, which is to increase a national safe access for water to 68.87% by 2015, and to 65.81% in rural areas.

Th e target of MDG for water supply in rural areas is a signifi cant challenge for Indonesia, because of the uneven distribution of its population and the poverty of its rural population. Number of poor in rural areas reaches as much as 65% of 35 million poor people in Indonesia. Currently, the safe access for water in rural areas is 45.72%, then requires an increase of 20.09% to achieve the target.

Government has worked hard to increase the safe access to water in rural areas reaches as, involving local communities in the planning, development and post project management processes. Large-scale investment projects to support development of water supply infrastructure in rural areas, such as WSSLIC and Pamsimas, are managed by communities through water user associations.

Th is organization has become an eff ective forum to manage and deliver sustainable development outcomes in rural drinking water infrastructure. Experience in community-based development indicates a positive result, such as increasing the sense of ownership of the project and reducing the project costs.

However, the performance of water user associations in the post construction period is largely determined by their managers and the participation of the community.

In order to achieve the positive results in management of drinking water as a community-based learning for stakeholders and communities, then herewith is drafted a handbook for Community-Based Water Supply Organization. It is intended as a reference of best practices in operating water supply system in rural areas by water user associations for the associations itself and also for local government.

Th is handbook describes the important aspects in the operation and maintenance and management of the system in good performance, which might encourage the development of new investment in community water supply systems. Each chapter presents instruments that aim to help users to implement the concepts. Th ese concepts include institutional frameworks for water supply provision, regulatory requirements to establish a water supply service organization, the organizational structure and management systems of water user associations, the components of small-scale piped water supply systems, basic operation and maintenance, recording system and fi nancial reporting for water supply management associations, and preparation of investment development plans.

I would like to express my sincere gratitude to everyone who worked in the preparation of this book. I hope that it is useful and gives a signifi cant contribution to provide guidance for enhancing competency-based and community drinking water management to meet water needs for the poor in the rural areas and creating a more prosperous Indonesian society.

Jakarta, 15 April 2011

Director of Water Supply Development

Ir. Danny Sutjiono

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1.Background

Because a signifi cant number of villages are outside the reach of utility service and rely on unimproved sources of water, the Government of Indonesia has been supporting the construction of village water infrastructure to be managed by users through community-based water organizations (CBOs) since the 1990s.

Figure 1: Rural Water Supply Access

0%10%20%30%40%50%60%70%80%90%

100%

2006 2007 2008 2009

Unimproved

Other Improved

Piped

Source: Statistics Indonesia, SUSENAS

A study of CBOs in 5 districts in West and East Java1 found that they provide a far-reaching service – catering to an average of 1,200 persons (approximately 300 households) per organization. All the CBOs operating in these 5 districts alone could be serving up to 800,000 people with piped water, representing about 7% of the total population in those districts.

Emphasizing local ownership, the community-based management model allows systems to be better maintained and operated over their lifetime. If CBOs perform exceptionally, they could operate the infrastructure to generate income that may be used to expand services to new customers, who are usually willing to pay for better service.2 However, expansion requires improved commercial practices beyond what CBOs might be able to currently arrange. An increase in the numbers of customers, for example, will require improved billings and collection practices, better fi nancial recording – often to support the ability to seek debt fi nancing, continued planning, maintenance and renewal of assets and improved organizational systems.

1 Th e Multi-Village Pooling Project baseline study assessed 171 CBOs representing 25% of over 600 known CBOs existing in the districts of Bandung, Cianjur, Lamongan, Malang and Blitar.

2 Water and Sanitation Program and Akademika, Willingness-to-Pay for Community-Based Water Supply Services in West and East Java, (2009).


Introduction

2.1. Purpose

Th is reference book is as much for the staff and managers of organizations who assist CBOs, as much as it is for the staff and managers of CBOs themselves, to help CBO operate viably.

Th e book discusses basic concepts on key topics to managing a small piped water system ideally for up to 1,000 households. It presents tools that can be adapted by CBOs for use in their operations, such as forms, checklists and procedural guidelines. Illustrative examples have also been compiled from the experiences of the district local governments, support organizations and CBOs operating in East and West Java, who participated in the Multi-Village Pooling (MVP) Project.

Th is toolkit seeks to compile a set of ready resources for organizations supporting Indonesian CBOs and CBOs themselves, which was not previously available despite many years of rural water investment projects. Th e book introduces fundamental concepts in an easy-to-understand way, so that a number of discussions have been simplifi ed. Th is will give users a basic understanding enough to seek further resources/references or advice from experts, which is encouraged.

2.2. About the Multi-Village Pooling Project

Th e MVP project (2008-2009) was a research activity that sought to generate lessons on the potentials and challenges of CBOs and ways to help them improve and expand services on a continuing basis. Th e tools in this book were developed and tested with CBOs and their support organizations that participated in the project. Support organizations included the local government units on housing and settlements (Dinas Cipta Karya), health (Dinas Kesehatan) and planning (BAPPEDA) in the districts of Bandung, Cianjur, Blitar, Malang and Lamongan; non-government organizations such as Yayasan Pengembangan Swadaya Masyarakat and associations of CBOs: Asosiasi Hippams Banyu Urip (Lamongan), Asosiasi Pengelola Sarana Air Bersih dan Sanitasi Blitar Sehat (Blitar), and Asosiasi Pengelola Sarana Air Bersih dan Sanitasi (Malang).

Th e project, including the development of this toolkit, was led by Ministry of Public Works in partnership with the Ministry of

Health and National Development Planning Agency. Th e World Bank Water and Sanitation Program provided implementation support to these ministries.

2.3. Topics and Tools in the Book

Th e book is made up of eight chapters that discuss the diff erent aspects of operating and maintaining, managing and planning a new investment in a community-managed water system. Each chapter includes tools available to help users implement the concepts discussed. Tools within the chapters are usually fi lled up with examples, while blank forms are available in an appendix.

Chapter 3 Institutional Framework for Community-Managed Water Supply gives an overview of the legal and policy framework within which community-managed water supply systems operate. A Model Local Regulation of Community-Based Water Supply is a tool that may be adapted into a district council or mayoral decree to organize and govern the sector locally.

Chapter 4 Regulatory Requirements to Operate a Water Supply System discusses the basic regulatory requirements for operating a water supply system in general, and a community-based water system in particular. A sample of Water Extraction Permit is included. Th e chapter also discusses two important continuing obligations of the CBO. Th e fi rst obligation is to meet drinking water quality standards and the second, is to provide water supply on a continuing basis as a viable entity. Th e chapter provides an overview of the regulations on drinking water quality and monitoring, as well as a discussion on performance monitoring. A Guideline for Establishing a Performance Monitoring System that discusses performance measurement and analysis, linked to the reporting and regulatory requirements of local government is annexed as a tool.

Chapter 5 Organizational Structures and Management Systems of CBOs tackles the main operational and management functions of a CBO and provides suggestions on how community groups can be organized to eff ectively perform those functions. As implementation support, the chapter features Notarial Decree Establishing the CBO (in the form of a cooperative or an association), Model Articles of Incorporation of a Cooperative and an Association, and an Organizational Chart with Job Descriptions for the most basic

2.

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positions. Th e chapter also emphasizes the use of governance systems internal to the organization, to ensure that CBOs operate viably and in doing so, meet the expectations of the community in terms of service and how resources are used. Th ese organizational systems for accountability are exercised primarily through the Board of Governors and the General Assembly. Tools in support of these systems include: Composition and Function of the Board of Supervision, including a List of Matters for the Deliberations of the Board, Sample General Assembly.

Chapter 6-A Components of a Small Piped Water Supply System starts by describing the basic infrastructural components of a water supply system, from drawing water from the source; transmitting, treating and storing water, to distributing it for use. Th is sub-chapter includes technical discussions on measuring the available volume of water from the source, water quality and treatment as well as some simple hydraulic concepts related to pipe-sizing and storage design.

Chapter 6-B Basic Operations and Maintenance Th e second part of the chapter discusses basic operations and maintenance of diff erent system components.

Th ere are numerous tools accompanying the diff erent topics in this chapter: Illustrations of Typical Structural Components, Water Quality Standard Regulations, Table for Calculating Pipe Diameter, Standard Procedures for Operations and Maintenance and Troubleshooting Guide.

Chapter 7 CBO Financial Recording and Reporting System Th e chapter presents the steps, formats and responsibilities of a simple fi nancial system for a CBO. Th e system is a simplifi ed fi nancial management system tailored to community-based water businesses. It is founded on recording on a ‘cash basis,’ but modifi ed so that essential fi nancial reports, such as the income statement and balance sheet, can be generated by the system. Th e discussion starts with assigning minimum fi nancial recording responsibilities and proceeds with a step-by-step guide on transaction recording (receipts and payments) and summary reports generation. Th e tools include: Forms for Meter Reading, Water Tariff , Bills for Collection, Customer Ledger Cards, Water Bill, Offi cial Receipt, Cash Receipt, Payment Voucher, Cash Disbursement Book, Subsidiary Ledger, Accounts Summary, Adjustment Guide, Income Statement and Balance Sheet. Tools in support of the system are available in print format that can

be reproduced or photocopied, as well as in electronic format using Microsoft Excel, which has an added feature of automating the calculations through linked worksheets.

Chapter 8 New Project Investment Planning Th is chapter deals with the basic decision points and preparation steps should a CBO consider expanding or improving the current system. It deals with planning a budget based on technical specifi cations, calculating the resulting tariff s and assessing the feasibility of fi nancing a portion of the investment through debt as a basis for deciding whether the proposed investment project should go ahead. Th e chapter then discusses the steps and tools for making sure that project construction/implementation is conducted on time and according to the expected quality. Th e tools available from this chapter are: Template for Technical Planning, Bill of Quantities and Project Budget, Tariff Calculator, Financial Rate of Return and Net Present Value Calculator, and Procurement Plan Template.

Illustration 1: A Small Scale Water Facility in Indonesia


3.Institutional Framework for Community-Managed Water Supply

3.1. Who is Responsible for Providing Water Supply to the People?

Responsibility for water supply development rests on the State as part of a policy ‘to ensure universal access to water for minimum daily basic needs to support a healthy, clean and productive life.’ Th e State policy is primarily articulated in Law No.7 of 2004 on Water Resources (Law 7/2004) and Government Regulation No. 16 of 2005 on Water Supply System Development (GR 16/2005). Water supply development includes many aspects: planning, construction, operations and maintenance, and monitoring and control of services.

Th e authority to develop water supply within their jurisdiction primarily rests on local governments, who must act consistently with national and provincial policies and strategies. Under the law, they execute this authority through state- or region-owned enterprises (Badan Usaha Milik Negara – BUMN or Badan Usaha Milik Daerah – BUMD).

3.2. How can CBOs be Involved in Water Supply Service?

To what extent can cooperatives, private enterprises and communities become involved in water supply system development, considering that Law 7/2004 grants full authority and monopoly rights to state- and region-owned enterprises? Th e law provides that these groups can be involved in water supply in the event that BUMN or BUMD is unable to improve the quantity and quality of services in its area of responsibility. BUMNs or BUMDs may cooperate with these other legal entities on the basis of a cooperation contract. If CBOs

Chapter 3

• Gives an overview of the legal and policy framework within which community-managed water supply systems operate

• Describes a range of owner & operator arrangements based on the degree of participation by third parties

• Discusses the diff erent rights and responsibilities of water supply owners and operators

• Highlights the rights and obligations of water supply service customers

Available Tools:

• A Model Local Regulation of Community-Based Water Supply is a tool that may be adapted into a district council or mayoral decree to organize and govern the sector locally.

Figure 2: Responsibility for Water Supply and Sanitation Development (PP 16/2005)

WSS

Ope

r ato

r

Public / Consumers

Local Government

Consumers elect politicians and demand better service

WSS Operator delivers the services consumer demand

Politicians promise to deliver services

BUMD

Other Legal Entity

Establishes BUMD to

develop WSS & monitors

performance

Can enter into a cooperation

agreement

Develops policies in line with national & province

Ministry of Public Works

BPP SPAM* &Technical

Department

Coordinates with other agencies to develop

policies, standards and programs to support LGs

Provides inputs to achieve WSS objectives & balance interests of consumers and service providers

Local government

plans & invests in

WSS

Assists local governments in

implementation of standards &

evaluation of service

performance

*Support Agency f or Water Supply Development

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intend to operate within the service area of the local water utility (or Perusahaan Daerah Air Minum - PDAM), they must enter into a cooperation agreement with the PDAM. If CBOs operate outside the service area of the PDAM, the authority rests on the chief executive or a delegate department.

3.3. Residual Authority of the State and Local Governments

Even if the State cooperates with other legal entities, the Government retains the power to regulate water supply services and water resources use. Government entities may also assist service providers to facilitate the achievement of sector objectives.

Th e basic institutional framework for water supply development is depicted in the schematic in the previous page.

3.4. Are CBOs Part-Owners or Strictly Operators of Water Supply Systems?

As mentioned in the previous sub-section, government has the option of providing water supply under a fully public model, or through a public corporation model, i.e. BUMN or BUMD. It can also enter into partnerships with third parties. Depending on the authority delegated by the local government, legal entities can participate

in water supply under diff erent partnership models. Some of these partnership models are presented in the diagram below. Th e diagram does not seek to be comprehensive, but to show the possible diff erent degrees of participation.

Th ey can function as ‘strictly operators’ of systems owned by the government. As operators, they are expected to run the water supply infrastructure in return for some form of compensation. In traditional service or management contracts, this compensation comes in the form of a management fee. In the case of CBOs, however, most often the compensation comes in the form of the benefi t of aff ordable water supply to the community in which the individuals forming the CBO belong, and honorarium received by community-members who work directly to manage and operate the CBO. Community residents that form CBOs sometimes take part, not only in managing and operating the water supply system, but also in fi nancing the initial investments – such as, contributing cash or labor during construction. Often, depending on the agreement with government and the articles of organization on which basis the CBO was formed, contributions of individuals are ‘given up’ (much like a donation) to the water supply enterprise or CBO itself and any value generated by such investment is returned to continuing the mission of the

enterprise or CBO instead of being divided as profi t to the individual contributors. Th e ‘benefi t’ of the initial contribution, therefore, comes in the form of ‘community dividends’ as opposed to ‘(individual) owner’s dividends.’ Th ese are so called ‘service-oriented’ enterprises – where the primary purpose is not profi t, but access to service.

CBOs and other private entities may also cooperate with government as part-owners. In this case, they expect a return for their investments and retain a claim on the water supply assets. Th is arrangement is governed by an additional set of laws and regulations on public-private partnerships in infrastructure. (Note that ‘assets’ do not only include the physical infrastructure and buildings of the water supply system, but also the cash, inventories and receivables due to the enterprise.) In all cases, when the cooperation agreement fi nishes, the law states that assets must be turned over to government.

3.5. Why is it Important to Distinguish between Owners and Operators?

Owners and operators have diff erent responsibilities and obligations and enjoy diff erent rights and privileges. Clarifying the relationship at an early stage and through formal processes is a good way to protect each party from any confl icts that may arise given their sometimes divergent interests. More importantly, early and clear agreements will help ensure that diverging interests are minimized in the fi rst place and that both parties move towards a shared understanding of the goals of the partnership and the best way to achieve them. Th ere are a number of mechanisms/instruments that balance the relationship between owners and operators. Th ese include: laws, regulations, partnership/cooperation agreements, deeds of establishment and by-laws of enterprises, policies and decisions of the board of directors, dialogue and even, public or customer feedback.

Figure 3: Examples of Ownership and Operations Structures: Fully Public Provision to Fully Private Provision

Public owner &operator model

Public-ownedcorporation

model

Partnershipmodels X

Management Concession

e.g. local governmentDepartment ofConstruction

e.g. local governmentwater company (PDAM)

Public partydelegates authorityto manage, operateand maintainfacilities

Public party retainsownership

Public partydelegates authorityto manage, operateand maintainfacilities

Private partyinvests in systemexpanslon, butownership retainedby public party

Private partyinvests in equity

* Full private provision is not presently contemplated by Indonesian policy

Full privatization/

diventuremodel

Joint venture



3.6. Customers also have Rights and Responsibilities

Customers have the right to enjoy water supply services that meet the standards stated in law and regulations. Th ese include basic standards relating to the quality of drinking water, adequate volumes of supply, and availability of service. It can also include performance standards such as timeliness of repairs during outages and accuracy of billings. Customers have the right to be informed about the tariff and fees structure and their amounts. Indeed, in many communities, public consultations are held on the tariff s. Legitimate complaints/grievances of customers need to be adequately addressed – fi rstly through measures defi ned in the service contract between customers and service providers and ultimately, through the courts of law. Importantly, customers also have a right to obtain sanitation and wastewater disposal services.

On the other hand, customers have the obligation to pay for the service according to the established tariff policy and use the water supply judiciously. Customers have to do their part in maintaining the water facilities in good working condition and to follow directives received from the service providers.

It could be useful to formalize these rights and obligations through a service contract between the CBO and its customers.

Box 1: Partnership between Koperasi Warga Pakar Peduli (Kopali) and Ciburial Village Administration

Year Established : 1999No. of Customers at Start : 600Organization : 20-Year Partnership Agreement between Koperasi Warga Pakar Peduli (Kopali) and Ciburial Village Government

Prior to 1999, the villagers traditionally used public toilets located close to water sources, which at that time were scattered around the village. To meet household demand, from 2 a.m. onwards the villagers would take turns using the public toilet facilities.

In mid 1999, Ciburial village received a donation of pipes from the governor, which were suffi cient for only three of the village’s eleven neighborhoods. Th e village head called on the assistance of the members of Paguyuban Warga Pakar, which coincidentally included many alumni and professors of the Bandung Institute of Technology. Paguyuban Warga Pakar formed a committee to do the work, from designing the installation to giving information to the community via the sub-neighborhood and neighborhood heads.

Th e fi rst stage involved conducting a survey of community capacity and the number of households that could be served. Th e results of the survey concluded that the community should be divided into three economic strata: Class A - households with an above average capacity (15%); Class B – households with the capacity to meet extra needs (10%); and Class C – households that were only able to make ends meet and had no extra capacity (75%).

Th is purpose of this classifi cation was to identify those who were able (class A) to subsidize those who were less well off (class C), and those who were just able to meet their own needs (class B). Th e calculations showed that the cost of constructing an installation and reservoir to supply 1,000 users would be IDR 1 billion. Th is translates as an average payment of IDR 1,000,000 by each user, with Class A users paying IDR 3,000,000, Class B users IDR 1,000,000, and Class C users IDR 500,000.

By adopting this cross-subsidy approach, the community members support each other by sharing the cost fairly. Th e services are still running quite well, but the (new) village head unilaterally took over the management of the facility from last year, prohibiting any partnership agreements being made with private investors. Th e experience in Ciburial shows that forms of partnership need to be standardized, if necessary, by the district. Where third parties provide facilities, care needs to be taken to ensure that the business entity is accountable for the running of the business as proposed and for a clear minimum time period, to prevent businesses from profi teering.

Table 1: Rights and Responsibilities of Owners vs Operators

Owners vis-ă-vis Operators Operators vis-ă-vis Owners

Responsibilities• Invest in assets and asset

renewal, including, potentially, by taking on debt

• Take on a level of risk related to the growth of their investment

• In specifi c cases, fulfi ll residual obligation/liabilities

Rights• Return on investment• Proceeds in sale of assets• Appoint board of directors• Appoint managers• Supervise the operator

Responsibilities• Maintain assets in good

condition• Operate system to fulfi ll

service obligations• Exercise due care in the

fulfi llment of duties• Increase the return on

investment for the owner

Rights• Compensation• Security of tenure in good

service, according to the cooperation agreement

• Direct the day-to-day operations of system without undue interference

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Box 2: Where Can CBOs Go to for Assistance?

Managing and operating a water supply system is no small task. It requires a high degree of skills, hard work and patience – and it helps if they have institutions that they can turn to for support. Local governments and non-government organizations are the most common sources of support for CBOs.

BANDUNG DISTRICT GOVERNMENT RURAL WATER SUPPLY PROGRAM

Conscious of the government’s limited ability to provide infrastructure, including rural water supply facilities, an appropriate strategy is needed for the effi cient provision of water supply, particularly in rural areas. One method is adopting a community empowerment approach throughout the project cycle, which involves:

1. Increasing public participation2. Forming Village Water Supply Management Groups (Kelompok Pengelola Penyediaan Air Bersih Desa - KPPABD)3. Regular monitoring and evaluation4. Facilitating communities to construct facilities

To ensure optimal construction of the facilities, from verifi cation process through the proposal passing the local development planning screening process, villagers have formed village water supply management groups to propose water supply programs.

Th e village water supply management groups are involved in each development step, including planning, construction and maintenance. Th ey are involved by the contractors building the facilities, during the construction and maintenance phases. Management of the facilities built by the contractor (not the assets) is handed over to the village administration, which delegates their management to the village water supply management group.

By involving the village water supply management groups in every stage, the community, through the village water supply management group, should have a sense of ownership of the built infrastructure and gain experience in technical aspects of village water supply and the village water supply network.

Today, 201 village water supply management groups in 276 villages/wards in Bandung District have been formed and trained. Th e training and education program for the village water supply management groups is continuing.

Some groups that have been able to apply what they have learned from the training grow into healthy village water supply management groups that are able to build facilities, increase the number of users, and even have savings for rehabilitation and make contributions to village funds. All this, along with good service and competent technical, fi nancial and organizational management, have resulted in satisfi ed customers.

Ir. Deddy Mulyadi, MM, M.ScHead of Bandung District’s Housing, Spatial Planning and Cleanliness Agency

Yayasan PESAT (Ms. Helen Lok)

Th e Pesat Foundation is committed to supporting communities by providing water supply systems based on the capacity of the community. Th e foundation builds equal partnerships with communities to jointly manage water supply systems through water supply management boards.

Th e foundation bases its programs on detailed observations that explore all local potentials to ensure that each system meets the needs of the whole community. To this end, the foundation focuses on the institutional strengthening of water supply management boards to ensure the durability of the physical infrastructure of the water supply system. Th is institutional strengthening takes the form of training in good management, administration, and fi nancial practices, and technical training in water supply development.

Local communities now have water supply, although the management of the systems is not quite as planned and expected. Th e lessons learned from this experience are that communities are able to run water supply management boards as community forums, and that communities have much to off er to ensure the smooth running and sustainability of water supply programs. Support from others always helps towards developing water supply management boards so that local communities have a reliable water supply system managed by the community itself.

Chapter References:Water Resources Law No. 7/2004Government Regulation 16/2005Presidential Regulation 67/2005

Additional Resources: Model Local Government Regulation for the Operation of Water Supply Systems by Community-Based Water Supply Organizations – in CD


Regulatory Requirements to Establish a Water Supply Service Organization

In general, there are three basic requirements to be eligible to operate a water supply system in partnership with the local government. Th ey are: the organization must be a legal entity; it must have license to operate a water supply system; and, since the water supply provider is likely going to need to take water from natural sources, it will need a permit to extract water. Th ere are some exceptions to these and they are discussed below.

CBOs have been operating for many years on an informal basis. Why would CBOs consider formalizing and following regulations instead of going on as usual? Formality brings a level of security to CBOs – by following the laws, CBOs should expect protection from it including benefi ting from rights to property and use (e.g. water permits confer to CBOs the right to extract and use water), due process, limiting the personal liability of individual members and asserting to third parties the rights of the CBOs to continue to operate without disturbance. Compliance demonstrates to the public that a CBO is worthy of trust and acts responsibly, and therefore, should be given a degree of independence to operate continuously. Formality also opens up more doors for the CBOs to deal with other businesses and support agencies, such as a bank, investors and other development/government entities that have mandates to support micro- and small-businesses. Importantly, CBO formality gives the community enterprise recognition as a professional.

4.1. Must be a Legal Entity; Recognized Forms of Community Organizations

Based on regulations issued by the Ministry of Public Works (MPW Regulation 18/PRT/M/2007) to implement Law No. 7/2004 and GR 16/2005, communities need to manage water supply systems through a legal entity. A legal entity is a group of persons organized through the formalities specifi ed under the law and in this way is considered under the law as a single ‘juridical’ person.

Th e regulation identifi es a number of forms of organizations that are allowed to manage water supply. Community groups can form a private enterprise, either for-profi t such as a limited liability company or not-for-profi t, such as a foundation. Community groups can also be organized as a cooperative, which is a communally-owned organization established to pursue a common interest (in this case, the provision of water supply). If the provision of water supply was intended to be limited to community members, they can also form into an association, of which there are various kinds: users’ associations (Himpunan Kelompok Pemakai Air Masyarakat), community deliberation boards (Badan Musyawarah Masyarakat) community self-help groups (Kelompok Swadaya Masyarakat), and users’ and operators’ groups (Kelompok Pemanfaat dan Pemelihara). It must be emphasized that under GR 16/2005, a users’ association is only allowed to serve its community members. Th us, if the aim of the group is to supply water to those outside the community, it should consider forming a limited liability company, foundation or cooperative.

4.

Chapter 4

• Discusses three basic requirements for establishing a water supply service organization:o Formation of a legal entityo License to operate a water

supply systemo Water extraction permit

• Discusses other regulatory requirements to continue operating as a water supply provider

Available Tools:

• Comparison of Diff erent Organizations

• Guidelines for Community Water Supply Organizations Performance Monitoring

• Sample License to Operate

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To be conferred with legal status, organizations must be formed in accordance with the formalities provided by law. In the case of associations, members do not only need to establish their organization by way of a notarized deed in accordance with the Indonesian Civil Code juncto Staatblad 1870 No. 64 (Stb. 1870 No. 64), but the deed must also be approved by the Ministry of Law and Human Rights.

Although GR 16/2005 and MPW Regulation 18/PRT/M/2007 speak only of state- or region-owned enterprises, the law on decentralization (Law No. 32 of 2004)

in relation to the government regulation on general directives regarding villages (GR 76/2001), allows for the establishment of village-owned enterprises. Th erefore, it is conceivable to have village-owned water supply enterprises in addition to state- or region-owned ones. However, the regulations are clear that such a village enterprise will still need to take one of the forms of organizations recognized by law – such as a cooperative, limited liability company, etc. Its character as a village enterprise relates only to its ownership. Th e village is both a political and social

structure in the Indonesian context; and the dominance of each character varies from village to village. Th is is why, often, a village-owned enterprise is taken synonymously as a community-owned enterprise. Legally speaking, a village enterprise operates under the authority of the village government, and all rights and liabilities for the system remains with the village.

Th e table below presents further details on the legal formation, nature and capacity of each type of entity recognized by law as legitimate participants in water supply development.

Table 2: Legally Recognized Forms of Water Entities

Limited Liability Company (“PT”)

Foundation Cooperative Association

Legal Basis Law 40/2007 on Limited Liability Company

Law 16/2001 on Foundation as amended by Law 28/2004

Law 25/1992 on Cooperative and GR 4/1994 on Requirement and Procedure of Legalization of Deed of Establishment and Amendments of Cooperative Charters

Indonesian Civil Code (KUH Perdata) juncto Staatblad 1870 No. 64 (Stb. 1870 No. 64)

Legal Status Legal Entity Legal Entity Legal Entity Either Legal Entity or NotLegality depends on registration with and approval by the Ministry of Law and Human Rights Legal entity is permitted to

sign agreements with banks or other parties

Non-legal entity is just a traditional association

Governance Structures and Succession of its Controlling Boards

General Meeting of Shareholders (GMS), Board of Directors, and Board of Commissioners

Directors and Commissioners are appointed and dismissed by GMS

Directors are appointed and authorized by GMS to manage the company

Board of Advisors, Board of Governors, Board of Supervisors

Governors and Supervisors are appointed by the Board of Advisors

Governors are authorized the Board of Advisors to manage the Foundation

Board of Advisors is the highest controlling organ in the Foundation

Note:- It is also possible for the Board of Advisors to appoint several people to serve as board directors on the recommendation of the Board of Governors.

Meeting of Members, Management Board, Board of Supervisors

Managers and Supervisors are appointed and dismissed by Meeting of Members

Management is authorized by the Meeting of Members to manage the Cooperative

Meeting of Members is the controlling organ of a Cooperative

Founder and Appointed Management

Appointed Management is authorized by the Founder to control and manage the Association

Associations are for social, cultural and political aims and objectives

Meeting of Members is the controlling organ of an Association





Responsibilities, Authorization and Liabilities of the Organization towards Creditors (Banks) and Suppliers

ResponsibilitiesTh e Board of Directors, under the supervision of the Board of Commissioners, has the responsibility toward creditors and suppliers

AuthorizationTh e Board of Directors, under the supervision of the Board of Commissioners, is authorized to deal on behalf of the company with the creditors and suppliers

LiabilitiesTh e Directors are not personally liable for agreements that they make on behalf of company

Loss liability is limited to the number of shares held by the shareholders

ResponsibilitiesTh e Board of Governors, under the supervision of the Board of Supervisors, has the responsibility toward creditors and suppliers

AuthorizationTh e Board of Governors, under the supervision of the Board of Supervisors, is authorized to deal on behalf of the foundation with creditors and suppliers

LiabilitiesGovernors are personally liable if the Board of Governors fails to carry out its duties according to the Deed of Establishment, causing loss to the Foundation or a third party

ResponsibilitiesTh e Management Board, under the supervision of the Board of Supervisors, has the responsibility toward creditors and suppliers

AuthorizationTh e Management Board, under the supervision of the Board of Supervisors, is authorized to deal on behalf of the cooperative with creditors and suppliers

LiabilitiesTh e Management Board is liable in relations with creditors and suppliers. Th e obligations and liabilities largely depend on the agreements made. But in case of default, the Management Board will be held liable

ResponsibilitiesTh e Appointed Management has the responsibilities stated in the association’s Articles of Association

AuthorizationTh e Appointed Management is authorized to act for and on behalf of the association pursuant to the provisions of the Articles of Association

LiabilitiesTh e Appointed Management is liable, but not personally, for every agreement made on behalf of the Association.However, in case of default, the Appointed Management will be liable if the Appointed Management fails to carry out its duties according to the Articles of Association

Relationship of Organization with Members and Customers

Th e relationship with its customers depends on the agreements made between the company and its customers.

Directors may have direct contact with customers because it is their duty to perform the administrative work of the company.

In relation to obligations to third parties, the foundation is represented by the Board of Governors

Members of a cooperative are the owners and also the users/customers of cooperative’s services

Th e Membership of Cooperative is based on equality of economic interest in the cooperative’s business

Th e Appointed Management, as the people authorized to manage the association, are the ones who have contact with members and customers

Tax Liability Income tax liability Income tax liability Income tax liability Income tax liability

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Organizational/Registration Process

Established by two or more people by a notarized deed

Deed of Establishment

To obtain status as a legal entity, the company must submit an application

Th e application is made to the Minister of Law and Human Rights

If there is no objection from the Minister of Law and Human rights, within 30 days the applicant must directly submit the application letter and supporting documents

If all of the above conditions have been met, the Minister will issue a decree, approving the company’s status as a legal entity

Established by a notarized deed by one or more founders who donate a part of their wealth to the foundation

Deed of Establishment and Charter

To obtain legal status, the founders or their attorney submit an application to the Minister of Law and Human Rights through the notary who prepared the foundation’s deed of establishment

Foundation’s deed of establishment that has been legalized as a legal entity and amendments to the foundation’s charter that have been agreed or reported must be promulgated in the State Gazette of the Republic of Indonesia

Established by a deed of establishment and cooperative charter

Cooperative obtains status as a legal entity after the deed of establishment is legalized by the Government

Minister of Cooperatives and Small Enterprises Development legalizes the deed of establishment if, after investigation, it is found that the cooperative’s charter:a) is in compliance with Law

Number 25 Year 1992 on Cooperatives

b) does not contravene norms of public order and morality

Legalization of the deed of establishment is promulgated in the State Gazette of the Republic of Indonesia

Established by two or more people

Deed of Establishment is notarized

To obtain status as a legal entity, the deed of establishment must be submitted to the Minister of Law and Human Rights

If there is no objection from the Minister of Law and Human Rights, the application will be approved

No special regulations requiring promulgation in the State Gazette

Profi t For-profi t organization Non-profi t organization (Article 5 (1) Law Number 16 Year 2001 on Foundations and Law Number 28 Year 2004 on Amendments to Law Number 16 Year 2001 on Foundations)

Revenue is shared equally based on the composition of services provided by the members

Non-profi t organization

4.2. Must Have a License to Operate

CBOs must obtain a license to operate from the local government. Th e law speaks of competitive tender as the means in which third parties are brought on board to assist BUMDs in providing water supply. Th ere is little guidance at present, however, on how local governments must license providers who supply to communities outside the reach of such BUMDs.

Typically, licensing is an administrative procedure where the competence and capability of an entity to perform a public service is assessed, and the authority to carry out such public service is delegated within specifi c terms and conditions. Becoming licensed is a privilege, rather than a right – i.e., government has the authority to refuse to license an entity for just causes and given due process. Part of the license review process may include a public hearing to allow other parties to comment on the decision to grant a license.

A license will generally contain the following matters:



Table 3: Content List of a License to Operate

Subject Details Commentary

Information on the License Holder

Establishes the identity of the license holder with such information as the name, domicile, type of organization and authorized representative

Service Area Identifi es the location, area and communities that will be covered by the license holder

Important to defi ne not only the current service area, but if necessary under the conditions of the license, also any expansion areas that will be covered by the provider

Term and Period of the License

Duration in years; eff ective and expiration dates of the license

According to GR 16/2005, cooperation agreements for the supply of water will not exceed 30 years.

Fees Paid Indicates any amount paid to obtain the license

Service Standards and Other Conditions

Defi nes the requirements for the service with which the license holder must comply. Basic requirements relate to:

(1) Th e quality of water covering physical, chemical, and bacteriological requirements in accordance with quality standards determined by Minister for Health

(2) Th e quantity of water to be guaranteed in accordance with minimum basic daily needs, appropriate use and available fl ows

(3) Th e pressure of water supply to be guaranteed in distribution network system

Conditions relating to the performance of the entity might be applied to ensure that it can adequately serve the public in an effi cient manner. Th ese may include conditions/performance standards relating to:

(1) Financial viability of the enterprise(2) Operational effi ciency, such as in the number of staff or

the proportion of administrative costs to the total cost(3) Responsiveness and fairness to customers(4) Accuracy of billings(5) Maintenance and repairs, including the length of time

for repairs(6) Management of assets to ensure their proper working

condition

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Subject Details Commentary

Tariff s Outlines the approved tariff structure and the duration of eff ectiveness of the tariff approval (if diff erent from the period of the license)

Describes the process for how tariff adjustments are to be made within the duration of the license

Tariff -setting is discussed in Chapter 6. Based on GR 16/2005, tariff s need to consider the cost of operation and maintenance, depreciation, amortization and interest payment, other costs and an appropriate margin for the provider.

Periodic revalidation of the assumptions in the approved tariff and considering performance of the water provider is good practice and can make tariff adjustment processes fair and transparent.

Tariff provisions might also anticipate the need for adjustments, whether automatic or not, in the case of extra ordinary price increases/decreases in the price of inputs or other changes in the obligations of the provider.

Rights and Privileges GR 16/2005 sets out the following rights of a water supply provider. Th ey can also be specifi ed in the license:

(1) Obtain an amount of bulk water suffi cient for drinking water in line with license that is given

(2) Obtain land to establish infrastructure in line with prevailing laws

(3) Receive payments for service in line with the approved tariff

(4) Disconnect the connection of a customer who does not fulfi ll their obligations

Procedures for Administering the License

Th e license may refer to the administrative regulation that describes how licenses are issued, reviewed, renewed and canceled.

Reporting Requirements

Special reporting requirements to allow the issuer of the license to monitor the license holder’s performance could be specifi ed.

Financial reporting should also be specifi ed, including the standard used in fi nancial reporting and requirements for an independent audit.

Dispute Resolution Th e license may refer to procedures or regulation that cover the question of how aggrieved parties may seek redress in relation to the issuance of the license.



4.3. Must Have a Permit to Extract Raw Water

While not technically a prerequisite for establishing a water supply entity, it is hard to imagine how a CBO can begin to operate if there was no raw water to process, treat and sell to the community.

Th e law puts drinking water above all other uses of water, such as use for agriculture, industry and municipal services. Nevertheless, the policy seeks to ensure the sustainability of the source and requires a permit for drilling wells and for drawing water.

Exploitation of water resources is governed by 3 separate pieces of legislation: Government Regulation Number 22 of 1982 concerning Water Use Arrangements (GR 22/1982) provided the general framework for regulating water resources; the Minister of Public Works Regulation No. 49/PRT/1990 governs the procedure for licensing surface water use; and, the Minister of Energy and Mineral Resources Regulation No. 1451 K/10/MEM/2000 concerns the regulation of ground water.

Th e authority for issuing permits for the use of surface water rests on the Ministry of Public Works where the water source is located in a river basin that is under the management of the Ministry, and on the Provincial Governor otherwise. On the other hand, the authority to issue permits for the use of ground water lies with the district government where the water resources lies within the jurisdiction of the district, and elevates to the province where the water resource crosses boundaries.

For surface water, an application for the exploitation of water needs to be submitted 30 days prior to the intended use. Th e permitting authority will decide on the basis of whether there will be any disturbance to the public interest or environmental sustainability; and will assess whether technical and administrative requirements have been met, including the payment

of a subscription fee for the maintenance of water structures and the continued functioning of the water source.

For ground water, a permit is needed for the drilling of a well and also for the drawing of ground water. In some cases, the district chief may allow the use of ground water for drinking and household uses without the need for a permit under such limits as the local government will decide. Th e district government can introduce additional requirements, but in general, the requirements for the respective permits are:

Well-drilling: Drilling must be conducted by an accredited well-driller. Th e application for a permit to drill a well will include: a map of the location and topography of the well; drill plan; an environmental management/mitigation and monitoring plan for extraction of water that is less than 50 liters per second, or a full environmental impact assessment for the extraction of water that is equal to or more than 50 liters per second, from a single well within a 10 hectare area; evidence of ownership of water level monitoring equipment for applicants that have 5 or more wells, or for applicants planning to extract water at a rate equal to or more than 50 liters per second from 1 or more wells within a 10 hectare area. Following the grant of the permit, the well-driller is also obliged to give a report on the well testing and construction.

Drawing water: Th e application for a permit to draw water needs to include: the permit to drill; a drawing of the aquifer and geologic profi le (bedrock formation); the results of well testing; a blue print of well construction; and the report on physical and chemical testing of water. Th e applicant is required to install a production meter and report his monthly extraction to the district government.

4.4. Must Have Legal Access to Land

In addition to obtaining a permit to use water, CBOs must have legal access to the

land or property where: water source is located buildings, water towers and other

infrastructure for the water system will be built

pipes will be laid

Access to land may be done by way of a donation, sale, lease or ‘easement,’ i.e. granting another party a right of way. To ensure that CBOs, and the community that they serve, will have continuing access to the water source and distribution will not be disturbed, CBOs need to formalize this agreement with the land owner following the conditions of the law.

4.5. Continuing Obligation to Ensure Water Quality

Water supply providers have a continuing obligation to secure the health and safety of their customers. Th e standard quality for drinking water is regulated under the Minister of Health Decree No. 902 Year 2002 (MoH Decree 902/2002). Th e standards apply to water piped to households, trucked, or packaged that is intended for drinking and other health purposes. Standards are applied to bacteriological, organic, chemical, radioactive and physical properties of drinking water.

Testing for the presence of bacteria and other disease-causing organisms is very important since they can lead to a number of illnesses including acute gastroenteritis, hepatitis, cholera, and typhoid. Th e presence of fecal coliform in water may not be directly harmful, so, it may asked why the standard sets the maximum level for coliform bacteria at zero (or no) total coliform per 100 ml sample? Coliform may not cause disease, but are a good indicator of the presence of other disease-causing organisms: they are easier to identify and they react to the environment and to treatment processes similar to other organisms. Bacteriological testing needs to be carried out once a month and there must be at least one sample for every 5,000 persons served.

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Physical properties regulated are the color, taste and odor, temperature and turbidity.

Monitoring the quality of water is, fi rst of all, a responsibility of the water supply provider. Th is is part of its internal supervision. Monitoring involves checking the sanitation conditions in the environment, and testing the water from diff erent points: from the source, production, to the distribution and use.

Th e local government Department of Health conducts external monitoring as part of its external supervision functions and may apply sanctions or provide assistance to water supply providers who do not meet the standards.

4.6. Continuing Performance Review and Reporting

CBOs that have been successful strive to provide the best possible service to the community and this positive attitude in turn, increases the community support for the CBOs. Th e public has a large interest to make sure that the CBO operates viably and effi ciently, because otherwise, they cannot meet the needs of the community. In many ways, the success of a CBO is a positive thing for the community. For example, if the CBO is not able to cover the costs of running the system, then it will not be able to operate for long. Th is means the members of the community will have to make other arrangements to getting water, such as fetching or buying from another source.

As CBOs mature, they may sometimes become focused on ‘running the business,’ while members of community take the role of ‘customers.’ CBOs having originated from the eff orts of the community, managers will do well to exploit this strong bond to continue to foster mutual understanding and support. A process for regular review, reporting and feedback to the community on the performance of CBOs can provide the foundation for continuing improvement of and support to CBOs.

CBOs can also conduct performance monitoring as part of their internal processes for improvement. Th ey may want to compare their progress over time, or compare themselves to other CBOs to give them a reference in their search for excellence.

Performance monitoring can also help local governments in their supervision and support functions – for example, they can consider the track record of CBOs against the requirements under their license as a basis for renewal or for assistance.

A Performance Monitoring System is described in the annex of this Chapter.

Th is system is envisioned as a partnership between the local government and the association of CBOs in a district. It is a public process so that members of the community and other stakeholders can participate or at least, become more aware about how CBOs are doing.

Th e system employs a ‘benchmarking approach’ – within a group, individuals are ranked according to performance indicators, the top performers are identifi ed and their best practices understood and emulated by those with poorer performance. By comparing oneself to the best, a CBO can adopt the practices and change the way things are done to improve.

Chapter References:Water and Sanitation Program, Regulatory Framework for Community-Managed Water Supply in Indonesia (2008)

Additional Resources: Minister of Health Decree No. 902 Year 2002Guidelines for Community Water Supply Organizations Performance Monitoring – in CD


Th e previous chapter primarily focused on the external mandate of a CBO – what government and society expects of it and the instruments to function according to those expectations. Th is chapter tackles the internal arrangements of a CBO so that it can carry out its functions eff ectively.

5.1. What Makes Up an Organization?

An organization is an intended grouping of people with a common goal. CBOs are organizations with the goal of increasing the access of communities to water supply. Organizations function through several people, processes and practices working together.

Th e most signifi cant part of an organization is the people making it up. ‘People’ do not only refer to the individuals, but also to how individuals are grouped according to their roles. For example, in its most basic forms, people comprising CBOs are organized according to: general members, managers and operating staff . Th e knowledge, skills and values of people making up the organization have a signifi cant impact on CBO’s directions and performance. Th us, it is important to ensure continuing growth for all levels of people-parts of CBOs.

Processes help organizations turn inputs into outputs and ultimately, to use these outputs to achieve their goals. Processes are comprised of inputs, the means and the manner in which inputs are transformed into outputs. CBOs that are in the business of transforming raw water and distributing this for household consumption and with this undertaking, CBOs must also collect fees and manage funds. Th us, the basic processes that CBOs are involved are depicted in the illustration in the next page.

Th e succeeding chapters of this toolkit will provide guidance to a number of these processes. What is worth noting at this stage is the fact that although they are small organizations, CBOs need to consider a number of complex processes to continue to function eff ectively.

Th ese processes may not have been apparent at the time CBOs were formed. But as CBOs move forward, the ability to consider and implement these processes becoming increasingly important.

Organizations also function under a culture of how things are done based on the people and processes that are in place – this is what is referred to as practices. Practices are informal manifestations, but can be guided by formal policies and systems. It is important that CBOs agree on the values that will guide their practices and encourage desirable practices through the policies and processes that they adopt.

5.Organizational Structures and Management Systems of CBOs

Chapter 5

• Sets out the basic organizational development topics that need to be considered in establishing a CBO

• Provides a basic organizational structure to support the operational and management functions of CBOs

Available Tools:

• Composition and Function of the Board of Governors, including a List of Matters for the Deliberations of the Board

• Sample Articles of Organization and By-Laws for Associations and Cooperatives

• Sample General Assembly Agenda• Strengths, Weaknesses,

Opportunities and Th reats (SWOT) Analysis

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5.2. Laying the Basis for the People, Processes and Practices of the CBO

a. Articles of Organization

Arrangements for people, processes and practices within the organization are set out, fi rst of all, through the legal documents establishing the CBO – primarily through the Articles of Organization and its By-Laws.

Th e Articles of Organization sets out the characteristics of the organization as a legal entity. In many ways it is the basis for how the organization will function: it covers what is the scope of its activities and who are the owners that decide for the organization. It also defi nes how third parties (external to the organization) should deal with this organization and what the organization is allowed to do with them. Th e typical contents of the Articles of Organization include the topics below. What is important here is to ensure that a good discussion is held among the members and founders about each of these topics. Typically, CBO formation focuses on implementing the project or running the water supply system, and not enough thought is given to how the organization will hold together and move together.

1. Name and Domicile2. Basic Principles3. Objectives and Scope of Business4. Membership5. General Assembly6. Management7. Supervisory 8. Financial Management 9. Capitalization10. Expiration of Operational License11. Distribution of Profi t (excess

income)12. Penalty13. Liquidation of CBO and Settlement

A model Articles of Establishment is included in the annex.

b. By-Laws

By-Laws are more detailed rules of how an organization is structured and how it conducts its business. By-Laws guide the organization’s policy-making body, i.e. the Board of Governors, Board of Directors or the Board of Supervisors, etc. on how they will be selected, how they will exercise their role in directing the organization, how meetings will be conducted and how policies will be adopted, including voting.

c. Vision and Mission Setting

Th ough not legally binding documents, the statement of CBOs vision and mission is quite important in guiding members and offi cers on how to decide on a policy, how to proceed on activities, and even, how to act towards the organizations’ stakeholders. Going through a vision- and mission-setting exercise helps build understanding about the organization for present and future members and staff .

Th e vision statement expresses what the CBO wants to be. It should be set

suffi ciently high so that it will continue to guide and motivate the organization over a long period. On the other hand, the mission statement should explain what the CBO does. In doing this, the mission statement can explain why the organization exists, or who gives the organization the reason to exist. In stating what a CBO does, it can also talk about the values that guides the CBO in going about its business.

Table 4: An Example of Vision-Mission Setting by CBO Federations

Vision Mission Setting by

CBO Federations

In Lamongan, Blitar and Malang, a group of CBOs has come together to form a federation at the district level.

Th ese federations provide support to the individual member CBOs through exchange of knowledge, operational and fi nancing support.

Th ese federations also went through their own strategic planning exercise, starting with a statement of their vision and mission.

Vision

Future condition To be the best and largest association of community-based water organizations in Indonesia

Mission

Who are you?

Who gives you your mandate or reason for existing?

We are an association of community-based organizations who care about our customers;

What are your values? We are democratic, progressive and independent,

What do you do? and we exist to strengthen the capacity of our members

ObjectiveLong-term benefi t expected in pursuing the mission

CBOs in Kabupaten are strong, healthy and sustainable.

Target

Specifi c, Measurable,AchievableRealistic and Timebound

10 CBOs in this district will join the association and its activities within the year

Figure 4: Functional Areas of a Water Supply Enterprise



d. SWOT Analysis

Now that a CBO has a vision of what it wants to be and a mission explaining what it does, it needs to pursue that vision and implement its mission. It can do this in many ways, and one way to decide on what is the strategy best suited for it is to analyze its Strengths, Weaknesses, Opportunities and Th reats, or SWOT. By examining the factors that aff ect it, CBOs can pursue a strategy that maximizes its strengths and opportunities and minimizes its weaknesses and threats. Strengths and weaknesses are factors internal to the organization that aid or impede its ability to reach its objectives; while opportunities and threats are factors external to the organization, and so, not within its control. Examples are provided below:

After identifying the organization’s SWOT, it should ask itself the following questions and explore the alternative strategies:

How can we use our strengths? How can we stop each weakness? How can we exploit opportunities? How can we defend against each

threat?

Th e CBO can defi ne a strategy along one of the patterns described in each quandrant below:

Cell 1 is the most favorable situation: the CBO faces several opportunities and, with its many strengths, it pursues those opportunities. Th is condition suggests adoption of growth-oriented stra tegies. Cell 4 is the least favorable situation, with the utility fa cing major threats from a position of relative weakness. Th is condition calls for strategies to scale-back or focus on fi xing key weaknesses. In Cell 2, a CBO with key strengths faces an unfavorable en vironment. In this situation, strategies would use cur-rent strengths to minimize the eff ects of threats. A CBO in Cell 3 faces oppor tu nities but is constrained by several weaknesses. Establishing strategic partnerships and seeking support is im portant in these situations.

To make a strategy successful, 3 ingredients are critical. First, the strategy must be mindful of external conditions and aim

to assist CBOs in responding favorably to changes that may occur that is outside of its control. Second, the strategy and plan must place realistic require ments on the CBO’s internal resources and capabilities. Finally, the strategy must be carefully exe cu ted.

e. Structure

Executing a strategy needs people. Members of CBOs are free to organize themselves according to their needs and what tasks need to be done. An organizational chart is a useful way of thinking through what human resources the CBO will need to eff ectively pursue its objectives, how responsibilities will be divided among diff erent persons or groups and how the CBO will be supervised internally.

Th e chart shows the following: Functions or specialization Hierarchy of authority or chain of

command Pattern of coordination among

diff erent groups

Here is a suggested organizational chart for a typical CBO. It can be used as a starting point for discussion by the members of the organization about how they want the CBO to be structured.

Th e core team for a small CBO is usually composed of four people – a manager, secretary, treasurer and a technical person. Th e CBO can likely function with this set of people as a minimum, especially if the number of customers is only few – say less than 50 households.

Table 5: SWOT Analysis Illustration

Internal to Organization External to Organization

Strength Weakness Opportunity Th reat

Staff are skilled Low collection effi ciency

New households moving into the village

Cost of electricity rising

Members trust CBO management and participate in general meetings

No computers; records are all manual and prone to error

Local government program to support expansion of good performing CBOs

Water quality from the river is deteriorating due to pollution

Figure 5: Strengths-Weaknesses-Opportunities-Threats Strategies

External Opportunities

I n t e r n a l Weaknesses

Cell 3: Overcome weaknesses by taking advantage of opportunities

Cell 1: Use strengths to take advantage of opportunities

Internal Strengths

Cell 4: Minimize weaknesses and avoid threats

Cell 2: Use strengths to avoid threats

External Th reats

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Th e general manager has the overall view for how the CBO is functioning. His/her job is to coordinate the diff erent parts of the organization and ensure that each part gets the support it needs to fulfi ll its tasks. To do this, therefore, s/he is often engaged in the role of resource allocation and also review of eff ectiveness. S/he can do this by leading the following activities:

Strategy and business plan development

Budget planning Relationship building with staff ,

owners and stakeholdersPerformance review of activities and

staff

Many CBOs start off with a part-time general manager, often a volunteer, who has leadership qualities that is critical especially at the development stage of the CBO. As the CBO grows, the organization will need to think about the need for a full time

manager and whether new skills need to be brought into the organization to be able to lead those activities above.

Th e other core team members include the secretary, treasurer and head of technical operations. Th eir responsibilities need not be exercised by them directly, but they are accountable for the acts of their staff and other parties they choose to exercise such responsibilities through.

1. Treasurer• Responsible for the administration

of the CBO budget including performing procurement and other disbursement functions

• Responsible for the accounting of the resources of the CBOs, including maintaining fi nancial records and preparing regular fi nancial reports

• Responsible for safekeeping of CBO assets, including maintaining CBO funds in a bank

2. Secretary• Responsible for maintaining orderly

fi les for the CBOs, most importantly, customers ledgers and legal documents

• Responsible for regular issue of billings and billings and collection reports

• Responsible for the documentation of activities and meetings, especially agreements reached and actions taken

• Responsible for the communication and outreach of the CBO to diff erent stakeholders, including reporting to the general assembly

• Represents the General Manager

3. Head of Technical Department• Responsible for the operations and

maintenance of the water supply system, including the preparation of the operations and maintenance plan and budget

• Responsible for the continued production and supply of water based on the service standards

• In charge of ensuring that production and distribution of water meets the agreed service standards

• Responsible for repairs • Responsible for ensuring continued

functioning of diff erent parts of the water system, including the regular calibration of water meters

• Responsible for overseeing the quality of system expansion, if any

• Responsible for projecting and planning future needs of the system based on customer growth and demand

• Oversees the work of other technical staff including plumbers, meter readers, etc

f. Board of Governors and General Assemblies

In many cases, when the CBO is fully operational, the manager and staff become busy running the system and for expedience, the temptation is strong to make all decisions on behalf of the community or the members. Over the long run, however, this approach can result in:

Figure 6: Suggested Organization Chart of CBOs

ManagementBoard of

Directors/Governors

General Manager

Treasurer

Bookkeeper

SecretaryHead of Technical

Operations

Meter Reader

Special Committees : Health, Education,

Membership

General Assembly

Administration Operations



Lack of support from the community because they were excluded in important decisions

Weak accountability of the manager and staff because there is no opportunity for feedback on their own performance

Inability to recruit and train new leaders who can provide renewed energy to the organization

How do owner-members become involved in setting the directions for their organization without constraining the day-to-day functioning with too much control and consultation? Th e two main avenues to exercise their participation are: through their representatives on the Board of Governors of the organization and through their participation in the General Assembly.

Th e Board of Governors is a body that represents the owner-members. How and who composes the Board should be agreed in the founding of the CBO and will be set out in the Articles of Organization. In general, the people on the Board are selected by the owner-members to look after their interest. Commonly, Board representatives

are elected by the residents from among themselves – either geographically or by groups of residents representing diff erent interests (for example, representatives of businesses). Members can also choose to appoint representatives who are professional and who understand the business of water supply, or to reserve seats for representatives of the local government, such as the Village Head, to act as an adviser. Th e Board regularly sits – for example, monthly or quarterly – and part of its duty is to review the overall progress of the CBO and the performance, in particular, of its general manager. How the Board functions and makes decisions should be set out in the By-Laws.

It is not easy to draw a line on what decisions a manager can take and what needs to be submitted to the Board. Again, the Articles of Organization should cover this.

A General Assembly is a body comprising all the owner-members and it is also the forum where owner-members exercise their rights directly. As a forum, it is usually in the shape of the annual meeting. Th e yearly event is a chance to discuss a range of issues.

Th e common Agenda of the Annual Meeting includes:

the presentation and adoption of the CBO’s Annual/Bi-Annual Report;

the presentation and adoption of the CBO’s Annual/Bi-Annual Financial Statement;

the presentation and adoption of the CBO’s Annual Business Plan and Budget;

the consideration of any proposed business strategy and additional investments;

the consideration of any proposed changes to the water services tariff ;

the nomination or election of Board of Governors should the term of some members expire or when a position becomes vacant

the renewal of mandate to the General Manager (if this has not been delegated to the Board)

Conclusion

Th e General Assembly should meet at least once a year. Special meetings can also be organized whenever there is a need to discuss about specifi c and urgent issues, such as the need to select another member of the Board because of resignation. Th e Board is responsible to ensure that a General Assembly is held each year. Th e CBO will give all members of the community adequate period of notice of any General Assembly meeting, ideally, at least seven (7) days. Notice of Meetings can be delivered via water meter reader(s) and also posted on a community notice board. Other Special Meetings of the General Assembly can be convened according to the By-Laws of the Organization.

5.3. Summary of Systems of CBO Accountability

Th e table below summarizes the diff erent systems of accountability of CBOs discussed in this chapter and Chapter 2.

Box 3: Take it to the Board

What matters are best decided by the Board of Governors instead of the manager of the CBO? Because the Board of Governors is composed of representatives of the owner-members of the organization, in its most basic, owner-members have the right to decide on issues that will have signifi cant impacts on their ‘ownership’ – i.e. anything that could potentially reduce or increase the benefi t they derive from the CBO in a signifi cant way. Th is includes:

• Change in the main business of the CBO• Sale and purchase of assets – the amount of such transaction can be specifi ed to delineate

when the manager can decide and when the decision must be submitted to the Board• Change in the General Manager• Decision to take on long-term obligations – again, the amount of the transaction can

be specifi ed to delineate when the manager can decide and when the decision must be submitted to the Board

• Closure of the business and dissolution of the CBO• Approval of the business plan and budget prepared by the manager and staff

Some of the above decisions can also be put directly to the vote of the General Assembly. Again, this needs to be clarifi ed in the Articles of Organization.

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Box 4: It Pays to Have Strong Community Participation

Name : Sumber Maron Water Supply and Sanitation Management BoardLocation : Karangsuko Village, Pagelaran Subdistrict, Malang DistrictEstablished : 2005, began operations in 2006Current Connections : 990 households in 4 villages in 2 subdistricts.

Many factors motivate communities to establish water supply and sanitation management boards, including: 1. Abundant potential water sources but no modern system to improve people’s access to water supply2. A high incidence of water-related diseases (diarrhea and skin infections)3. Social problems (disputes between villagers or between villagers and the village administration) arising from disagreements over the use of irrigation water for

bathing, washing and personal hygiene4. Th e price of water (IDR 1,500/50 liters), which only the well-off can aff ord

To develop a water supply system that brings water to people’s homes, the community must, among other things: 1. Take an active role in all pre program meetings about the program2. Make cash contributions (IDR 11,750,000)3. Make in-kind contributions (IDR 56,500,00)4. Pay for the household connections

Initial hurdles in setting up a water supply and sanitation management board include: 1. Interference from rogue village offi cials2. Lack of conviction on the part of some community members

Steps to overcome these hurdles include: 1. Providing a continual fl ow of information about the development2. Strengthening information centers (local shops, meeting places, etc) as dissemination media3. Approaching community leaders, religious leaders and youth leaders4. Discussing and agreeing on matters5. Ensuring transparency in the fi nancial management of the organization (by providing all stakeholders access to fi nancial reports)

We have learned that it is important to: 1. Have discussions and make agreements2. Involve everyone (those for and against)3. Involve women, and 4. Have transparency in fi nancial management

SAYID MUHAMMAD, Chair, Sumber Maron Water Supply and Sanitation Management Board

Chapter References:Kaplan and Norton, Strategy Maps (2004)Onsman, Harry. Management Powertools (2004)Porter, Competitive Advantage (1985)

Additional Resources: Sample Articles of Organization and By-Laws for Associations and Cooperatives – in Appendices

Table 6: Systems of Accountability

Internal Accountability External AccountabilityGeneral Assembly Board of Governors

Defi nition Accountability of Board of Governors and manager of a CBO to its owner-members

Accountability of manager and staff to representatives of owner-members through the Board

Accountability of a CBO as a water supply provider to government and customers

Instrument Annual Report and Meeting Monthly/Quarterly Board Meetings License and Renewal of LicenseReporting Frequency Annual Monthly/Quarterly Monthly reporting and license

renewal review period (may be annual, 3-yearly, etc.)

Incentive/Penalty As provided in the CBO Articles of Organization and By-Laws or as agreed by the General Assembly

As provided in the CBO Articles of Organization and By Laws, contracts of employment of staff or as agreed by the Board

As provided by the license and regulations


6.1. What are the Components of a Water Supply System?

Figure 7: Simple Water Supply System (Combined Pump and Gravity)

Water Source

A water supply system typically has the following components:

1.Water production system –refers to the facilities needed to collect raw water from the source and prepare it for use; it may include the following:

water source and catchment protection – source where raw water is taken; usually from a spring, ground water or surface water (such as a river or lake) and the developments/activities that safeguard the continuing availability of water, such as protection of the catchment, tree planting, control of land use, etc.

water intake system* - a structure that catches water, allows sediments to settle and delivers water from a body of water to a structure off -shore

water treatment plant – modifi es the quality of raw water to meet standards

*Included in the chapter tools are schematic drawings for diff erent spring intake structures depending on the way in which spring water surfaces

2.Transmission system – refers to facilities, such as large-diameter pipes and pumps that move water through (usually) large distances from the source to the distribution system

3.Distribution system – refers to the facilities that bring water from the source to the point of use; it may include the following structures:

6A.

Chapter 6A.

• Describes the diff erent components of a small piped water supply system

• Explains water demand projections and measuring fl ows (quantity)

• Discusses diff erent sources of water and methods for tapping

• Presents concepts on water quality and treatment

• Introduces concepts in pipe-sizing and storage-sizing

Available Tools:

• Water Source Selection• Sample Schematic Drawings for

Spring Box • Table on Average Water Demand

per Type of Use• Water Treatment Table• Hazen Williams Table on Pressure

Loss for PVC Pipes• Table on Roughness Coeffi cients

of Pipes

Components of a Small Piped Water Supply System

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distribution pump house – a structure to store and safe-keep the pump that lifts water to higher elevation

water tank/reservoir – used to store treated water for supplying to customers

trunk and distribution lines – pipes that bring the water to the service area; trunk lines are larger pipes that bring water to a zone of distribution, while distribution lines refer to connections from the trunk lines to the houses

6.2. Selecting Water Sources

Th e following are the most common sources of raw water, their characteristics and factors to consider when selecting this as a source. Other factors to consider when selecting a source of water are common to all:

Suffi ciency of water quantity – methods for estimating the demand and measuring the capacity of the water source will be discussed in a succeeding sub-section. Ideally, the intake should allow greater volume of water to be drawn in the future

Elevation of source compared to supply area – relative elevation between the source to the supply area has an eff ect on the rate at which water fl ows, which in turn has implications for choosing the pipe diameter, site for reservoirs and the use of pumps. In locating the intake, it should be upstream from points of wastewater disposal

Distance from source to supply area – like elevation, the distance between the source and supply area also has an eff ect on the rate at which the water fl ows, and besides the above-named implications, the distance also dictates the length of transmission lines

Environmental eff ects of drawing water – as far as possible, draw water from the cleaner zones of the source. However, regulations for water use must be considered as well as any impacts on other users of water, including the use of water for environmental purposes

Water Underneath

Groundwater is stored in between and inside

cracks of the rocks, sand and soil. Water may come from rain or other surface water and penetrate the ground – the area called the recharge area, is usually found on higher elevations. Water then moves downwards through the ground to a discharge area where it fl ows to the surface. Since water is pulled downwards by gravity, the top layer of the ground is not saturated with water, but the deeper layer underneath will be. Th e very top of the saturated layer is called the water table. An impermeable layer on the very bottom, such as clay or bedrock, acts as a barrier preventing the water to continue

Table 7: Selecting Sources of Raw Water

Characteristics and Factors to Consider Spring Ground Water (Well) Surface (Ponds, lakes, river, etc.)

Water Quality Usually moderately satisfactory Usually satisfactory Usually less than satisfactory

Source of Pollution and Prevention

Local infi ltration of waste, such as from animals grazing around the spring

Fencing off the spring area and protecting the spring with a spring box

Seepage into the ground, such as from nearby septic tanks or dumpsites

Locating wells at least 10 meters away from a septic tank

Distributed across the area of the water body from point and non-point sources

General prohibitions or regulated discharge of pollutants into the water

Treatment Needs fi ltration and sedimentation to separate off sand/soil particles

Likely to need disinfection

Likely to need disinfection Likely to need sedimentation, fi ltration and disinfection at the minimum

May need other treatment process

Skills to Manage Production

Low Moderate Moderate to high

Use of Energy to Draw Naturally surfacing; gravity Pumping required to draw water

Diversion to intake usually does not require pumping

Main Flow of Flood Important to locate parts of the collection structure (e.g. inlet chamber) away from the fl ow of the fl ood

Important to locate parts of the collection structure (e.g. inlet chamber) away from the fl ow of the fl ood

Figure 8: Ground Water Formation

Water Table

Well

Impermeable Layer

Recharge Area

Aquiver



to seep downwards. An aquifer is an area that contains enough water to be pumped to the surface for water supply or irrigation. How much water the aquifer stores depends on the type and amount of material (rock or soil) in the saturated layer, the size and number of cracks and pores that can fi ll with water and the permeability (how well water fl ows through) of the soil or rock.

If water is prevented from rising to its free water table level by an impermeable layer on the top, the water is placed under pressure and is called ‘artesian,’ otherwise, the water is said to be ‘unconfi ned.’

When underground water is naturally discharged to the surface, this is called a spring. Springs are usually found on mountainous areas or river valleys. Artesian springs occur when water is forced out under pressure, such as through a break or fracture on surface rocks.

Figure 9: Spring Formation

AquiverWater Table

Artesian Spring

ImpermeableBottom Layer

ImpermeableTop Layer

Recharge Area

Pumps

If groundwater does not surface naturally, it is often drawn to the surface with a jet pump. Th e pump lifts water by creating a vacuum and letting air pressure push groundwater up the jet piping system. Depending on the mechanical action, pumps can be classifi ed as reciprocating (using a piston which moves up and down to generate the vacuum in the chamber), rotary (uses a mechanical device that rotates with a stationary part, which forces the water upwards), and centrifugal. Centrifugal pumps let water

enter the jet through an opening in front of a rotating blade, or impeller, which spins at high speed. Th e constriction at the opening of the jet causes the water to move faster. As water is rotated faster outward, it creates a vacuum at the opening of the jet that allows water to be continuously sucked in. Behind the jet is a casing that has a larger diameter that catches the water and makes it move more slowly. Th e ‘slowing down’ converts kinetic energy (movement) into pressure. Because jet pumps use water to draw water, they are often ‘primed’ or fi lled with water

fi rst. Th is initial water is prevented from fl owing back into the well by a one-way valve.

Where the water table is high, the pump can be mounted on top of the well. If the water table is deeper, usually above 6 meters, a submersible jet is used – where the jet is separated from motor of the pump and is placed down the well casing.

Pumps can be operated using electrical motors, diesel motors, and even wind power. Th e power is used by a dynamo that converts energy into movement through a rotor that spits the impeller. Th e rotation of impeller then resulting suction and or push power. Below is schematic diagram of pumps working mechanism.

Th e performance of a pump is determined by two main factors: fl ow rate of water to be pumped and the expected head so that the water can reach a certain level. Th e ‘effi ciency’ of the pump is provided by the factory and is in the label.

Estimating power needed for the pump Th e formula for computing the power

Figure 10: Components of a Jet Pump

Figure 11: Jet Pump System

Figure 12: Basic Pump Operating Stages

Down streamPipe Flange

DriveshaftFlange

VoluteChamber

Rotating DirectionIndicator

PumpCasing

Impeller

UpstreamPipe Flange

SuctionSide

Pressure Side

SINGLE- DROPJET-PUMPSYSTEM

DOUBLE- DROPJET-PUMPSYSTEM

STORAGETANK

PRESSURESWITCH

PUMP

FOOTVALVE

WELLCASING

In a shallow-wellsystem, the pumpcontaining impellerand jet assemblyis above ground.Atmospheric pressurelimits well depthto about 25 ft

In deep wells, jetassembly is in thewell. Impeller inpump circulateswater throughjet to drawadditional waterinto the system

STORAGETANK

PRESSURESWITCH

PUMP

WELLSEAL WELL

SEAL

2-PIPEJETASSEMBLY

WELLCASING

Power (electric/diesel/wind) Dynamo Rotor Impeller Suction/Push

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needed for a specifi c pump is given by:

P = Q x g x Htotaln x 75

Where: P : Power (in horsepower) Q : Flow rate (liter/second) g : Density of the liquid (kg/l) Htotal : Total head (m) n : Pump effi ciency (%)

Water at 4oc has a density of 1 kg/l. Horsepower (HP) can be converted into kilowatt (KW) using the following conversion: 1 KW = 1.31 HP and 1 HP = 0.746 KW.

6.3. Estimating Quantity of Water Demand

In planning for the development or expansion of a water supply system, it is necessary to make predictions about the quantity of water needed for the future. Th is estimation will help to assess whether the capacity of the water source is suffi cient and to plan for developing new infrastructure to meet those future needs.

a. Guiding Principles in Estimation

Th e Ministry of Public Works Regulation 18/2007 suggests that the projection of water needs be done for a planning period of 15 years, in 5-year intervals. It is necessary to make assumptions on how many additional customers will be served during each interval of the planning period.

Diff erent components of the system will need to be expanded/developed during the 5 years, according to the following portion of the projected demand:

o Water intake – 130% of the volume of total water needs for the day

o Water treatment – 120% of the volume of total water needs for the day

o Water distribution – 100% of the volume of total water needs for the peak hour of the day

For the water distribution system, the demand for water should be based on the volume required during peak hours, not just the average during the day. ‘Peak hours’ refers to the hours of the day during which the volume of

Table 8: Customer Profi les

Type of Customers

Total Number of Customers

Average Consumption

Annual Consumption

% of Total Annual Water Consumption

1. House connections

300 households x 4 persons =

1,200 persons

50 liters per capita per day x 365 days

21,900 m3 85%

2. Stand pipes 2 standpipes x 20 households x 4

persons =120 persons

20 liters per capita per day x 365 days

876 m3 4%

3. Water-using businesses, including restaurants, laundry and clinics

2 establishments x 10 visitors = 20 visitors

100 liters per visitor per day x 365 days

730 m3 3%

4. Non-water using businesses, such as offi ces

2 establishments x 10 employees = 20

employees

20 liters per employee per day

x 20 days x 12 months

96 m3 0.5%

5. School 1 elementary school x 6 levels x 35 students = 210

students

20 liters per student per day x 20 days x

10 months

840 m3 3.3%

6. Mosque 1 mosque x 210 visitors per week / 7 days = 30 visitors

20 liters per visitor per day x 365 days

219 m3 .09%

7. Public Market 1 market x 20 stalls = 20 stalls

200 liters per stall per day x 2 days x

12 months

96 m3 .05%

8. Livestock - cow 40 heads 30 liters per head per day x 365 days

438 m3 1.7%

9. Livestock - goat 40 heads 20 liters per head per day x 365 days

292 m3 1.1%

Total Annual Water Consumption

25,487 m3 100%

Additional Provision for:10. Fire fi ghting,

system fl ushing and other public uses

1,275 m3 5% of 25,487 m3

11. Water losses 5,100 m3 20% of 25,487 m3

Total Water Needs

31,862 m3

water utilization is highest because of simultaneous use. Th e actual hours when demand is highest should be observed by the water provider, but usually these are during the following times: 06.00-09.00, 12.00-14.00 and 17.00-19.00



b. Rate of Consumption and Type of Customers

Th e profi le of the customers in each locality will diff er with the user of water and their uses. Based on the assessment conductedin 6 districts, typical customers and theiraverage consumption are shown in Table 8 on page 31.

c. Projecting and Planning Infrastructure Expansion at 5-Year Intervals

To estimate the future demand for water, it is necessary to estimate the increase in number of customers within groups during the 5-year interval.

For example, the CBO may anticipate that number of household connections will

increase from 300 households today by an additional 30 households each year, or a total of 150 households in 5 years, while other customers will remain the same. In this example, the additional 150 house connections are expected to add 10,950 m3 to the Total Annual Water Consumption, so that in the next 5-years, the CBO must plan for a system that allows the production and delivery of water for a Total Water Volume Needs of 45,546 m3, i.e. [(25,487 m3 + 10,950 m3 = 36,437 m3)] *1.25 = 45,546 m3

o Water intake – 130% of the volume of total water needs, or 59,210 m3

o Water treatment – 120% of the volume of total water needs, or 54,656 m3

o Water distribution – 100% of the volume of total water needs, or 45,546 m3

d. Convert the volume into fl ow rate

Based on the largest volume of total water needs, i.e. the total water needs for year 5, convert the volume into fl ow rate (liters per second). Remember m3 is equal to 1,000 liters. So, in the above example, the water intake fl ow rate capacity is:

59,210 m3 per year x 1,000 = 59, 210,000 liters per year59,210,000 liters ÷ 365 days = 162,219 liters per day162, 219 liters ÷ 24 hours = 6,759 liters per hour6,759 liters ÷ 60 minutes =112 liters per minute112 liters ÷ 60 seconds = 1.87 liters per second

6.4. Different Ways to Measure the Capacity of the Water Source

Does the water source have enough water to meet the demand? To answer this, we need to know the volume of fl ow from the source. Th ere are diff erent methods to measure the rate of fl ow from diff erent sources. It is important to remember that seasons will aff ect the rate of fl ow, so it is a good idea to measure just at the end of the dry season.

Table 9: Measuring Water Source Capacity

Ways of Measuring

Spring Ground Water (Well)

Surface (Ponds, lakes, river, etc.)

Volumetric

Flow Method Using a Weir

Pumping

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Figure 13: Flow Measurement Using Volumetric Method

Volumetric Method Suitable for point source fl ows, i.e. the fl ow of water localized

Flow Measurement Using Volumetric Method

You will need 1. Water container with a known volume2. Stop watch3. Pen and paper to note down the results

Steps 1. Place the container at the point of fl ow 2. Record the time it takes to fi ll up3. Repeat a few times for best results4. Calculate the Quantity of Flow with the formula below for each trial5. Take the average Quantity of Flow for all trials

Formula Q = V / T

Q – quantity of fl owV – volume of container (in liters)T – time it takes to fi ll up the container (in seconds)

Example of applying the formula

Trial Volume of basin (liter) Time (sec) Debit (liter/sec)

1 10 3.30 3.03

2 10 3.10 3.23

3 10 3.00 3.33

4 10 3.50 2.86

5 10 2.90 3.45

6 10 3.50 2.86

7 10 3.40 2.94

8 10 3.30 3.03

Average 3.09



Figure 14: Weir Method

Flow Measurement Using a Weir

Suitable for spread out fl ows of waters

Figure 23.A

Figure 23.B

Figure 23.C

9004 H min

Point to Measure Depth (H)

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You will need 1. Th ompson Weir – A weir is an overfl ow structure installed perpendicular to the channel or fl ow of water. Th e weir has an opening in the middle (with known dimensions) cut on its top edge. Th is opening is called a ‘notch’ and the bottom edge of the notch is the ‘crest’ of the weir. A Th ompson Weir has a V-shaped notch. (Figure 1)

A weir acts like a ‘dam’ and causes water level to increase upstream of it. Th e level of water above the crest of the weir is called the ‘head’ (h) – See Figure 2. Th is level of water needs to be measured at a specifi ed distance upstream. Ideally, it is 4 times the ‘head’ (depth of water fl ow above the crest) (See Figure 3).

2. Table of Th ompson Weir – Th e table converts the ‘head’ into fl ow rate using a formula.

Steps 1. Set the weir in the part of the channel or river that is straight (not meandering) and be sure that there are no upstream obstructions.

2. Measure the ‘head’ in centimeters (See Figure 3) by driving a gauge into the channel upstream from the weir.

3. Use the table to convert the head into fl ow rate.Table



Prospecting, Resistivity and Pumping Test

Prospecting is a study of how water occurs within ground formations to understand their distribution and quality. Th ese tests are conducted to determine how much water can be safely taken from a well for use in the water supply system. If there are already several wells in the area, or if the aim is to develop the ground water for a large area, drilling and aquifer pumping may be required to investigate the eff ects of pumping on the yield of other wells in the vicinity and on the aquifer.

You will need 1. Any information available about the area such as maps and reports of known boundaries, soils and geological formations, topographical information, data on hydrology and meteorology.

2. Site diagram with the location of the well to be tested (test well), and other nearby wells that may be aff ected by the pumping (observation wells); well-logs (i.e. records of rates of drawing water); information on the depth and construction of the neighboring wells; information on water quality and yield of wells.

3. Expert inputs are necessary. Based on knowledge about how water exists in the specifi c ground formations in the area, an experienced hydrogeologist may be able to defi ne sources for water supply systems and their characteristics.

4. With special geo-resistivity equipment, experts may also be able to conduct electrical resistivity tests to establish the characteristics of the water table such as depth, quality and aquifer distribution.

5. In pumping tests, a special test well has to be developed and the quality of test well construction can aff ect the results. Special instruments are also needed to take measurements. Experts, such as a hydrologist, will also be needed to interpret the information.

Description Resistivity measures how well electricity is conducted through the ground (with varying layers of formation). Th e resistivity values are then compared to an existing well of which the hydrological information are known, to establish the geological conditions underground.

Th e pumping test is undertaken by pumping a test well at a constant rate (similar rate to the proposed debit) for a period, usually at least 24 hours, and observing the rate of discharge, change in water level in the test well and change in water level in observations wells (such as neighboring wells that may be aff ected by the pumping of the test well).

6.5. Tapping Water from Springs

If a spring that has been chosen meets the quantity needs of the water supply system throughout the seasons, then, tapping excavations are scheduled. Excavation requires moving the soil to fi nd the impermeable bottom layer and evacuate the water from the spring into a collection chamber.

In case the spring seeps over an area, long infi ltration galleries/drains may be needed. However, when the spring outfl ow is concentrated at a point, only a small

catchment infrastructure may be necessary. Th e collection chamber, often called a ‘spring box,’ aims to protect the collected water from contamination and direct the draining of the spring into the water supply system.

Care must be taken in building this – if built wrongly, the entire water supply system will be at risk.

‘Bronkaptering’ is a term used in Indonesia to describe a spring catchment structure that consists of a catchment basin and a temporary reservoir. Th e catchment basin

collects all water discharged from the spring. Th is structure should be leakproof so that the tapping of water is optimized. Th e water level in the catchment basin should be below the height of the spring so that water fl ows unimpeded. Th e temporary reservoir, sometimes called the gallery, functions as a preliminary storage that delivers the water to the transmission pipe at a specifi ed rate of fl ow so that fl uctuation in water quantity is regulated. Meanwhile, excess water in the catchment basin is let out automatically through an overfl ow pipe so that the basin is not put under strong water pressure that may cause it to break. If enclosed

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(desirable), a manhole should be available in the basin that functions as entry point for people for inspection, cleaning as well as repairing the basin. Ventilation pipe for air circulation should be also available in the basin. To manage the water fl ow in the pipe, a valve should be installed in the protected and dry place.

Below are other illustrations of enclosed spring boxes. Note the following features:

A manhole to allow inspection and access into the chamber

For deep structures ( > 1 meter), a ventilation pipe may be necessary

Filtering gravel is laid between the aquifer and the spring box structure

Supply pipe, air vent and clean-out/blow off pipe to drain are is screened to prevent entry of sand/dirt

An overfl ow pipe Outlet pipe has a gate valve to manage

the fl ow. Outlet pipe is located in a protected and dry area of the box

Illustration 2: Water Catchment

Figure 15: Intake Structure

TYPE “B” INTAKE STRUCTURE

TYPE “B” ADAPTABLE WHERE THE SPRING WATER IS GUSHING OUT ON AN ALMOST LEVEL GROUND

10 mm Ø BAR @ 300 mm O.C. BOTH WAYS

10 mm Ø BAR @ 150 mmO.C. BOTH WAYS38 mm Ø

OVERFLOW PIPE

MANHOLE3% SLOPE

VARIABLE SIZESUPPLY PIPE

GATE VALVE

BLOW OFF PIPEGATE VALVE

APRON

APRON

150 150

DRAINAGECANAL PVC STAINER

300

400

600

NIM

600

NIM

TO BE GROUTED AND PLASTERED W/ MORTAR EXCEPT WHEN WATER GUSHES OUT

TYPE “C” INTAKE STRUCTURE

TYPE “C” ADAPTABLE WHERE THE SPRING IS LOCATED INSIDE A CAVERN

S E C T I O N A - A

10 mm Ø BAR @ 300 mm O.C. BOTH WAYS

38 mm Ø OVERFLOW PIPE

VARIABLE SIZE SUPPLY PIPE

GATE VALVESPRING

PVC STRAINER BLOWOFF PIPE75 mm Ø WITHGATE VALVE

600

500150

600

300

TO BE GROUTED AND PLASTERED W/ MORTAR EXCEPT WHEN WATER GUSHES OUT

VAR

VAR

VAR

TYPE “D” INTAKE STRUCTURE

TYPE “D” ADAPTABLE WHERE SPRINGS ARE SCATTERED ON A HIGH ELEVATION WHICH REQUIRE A LARGE INTAKE

10 mm Ø BAR @ 150 mmO.C. BOTH WAYS

10 mm Ø BAR @ 300 mmO.C. BOTH WAYS

38 mm Ø OVERFLOW PIPE

MANHOLE

VARIABLE SIZESUPPLY PIPE

GATE VALVEPVC STRAINER

BLOWOFF PIPE75 mm Ø WITHGATE VALVE



It is also important to protect the structure. Embankments may need to be reinforced with retaining walls. Th us, after building the spring box, the area excavated is back-fi lled, and the perimeter of the spring above the level of the aquifer can be fi lled with clay to prevent water infi ltration. A ditch must be dug to divert surface runoff from entering the spring box. Th e spring tapping area as well as the entire zone where the drain system extends, need to be protected from pollution from humans and animals. Ideally, the area should be fenced off . Reforestation within the area is also a good idea.

6.6. Managing Water Quality

Treatment of raw water is often necessary to make it usable for drinking and other uses. Th e main aim of treating water is to remove pathogenic organisms and toxic substances that would harm the health of users. However, treatment also allows the water to become fi t for use in its appearance, taste and quality.

In case of water from the ground or naturally rising to the surface as a spring, where the aquifer and surrounding environment is clean, water may be ready to use without treatment. Th e process of rain infi ltration into the ground can remove particles, organic substances are degraded by oxidation; and organisms die. However, dissolved solids will not be removed. When the water in the aquifer contains organic matter, the available oxygen will have been consumed by the processes of degradation and carbon dioxide increases. Th is makes the water corrosive (acidic). Water without oxygen will dissolve iron, manganese and other heavy metals, which give the water a rusty taste and will stain clothes when used for washing. Introducing oxygen through aeration will remove these substances.

Surface water from rivers, streams, lakes and irrigation canals carry with it run-off from the surrounding environment, so water tends to be cloudy (turbid) and with organic as well as pathogenic material.

Wastewater fl owing into the surface water as well as growth of algae, cause surface water contamination. In such cases, a series of treatment procedures may be necessary.

6.7. Design of Water Transmission and Distribution

Figure 16: Roughness Coeffi cients (C) for Different Types of Pipes

Cement-Mortar Lined Ductile Iron Pipe - 120 Concrete - 100-140 Steel - 90-110 Galvanized iron - 120 Polyethylene (PE) - 140 Polyvinyl chloride (PVC) - 130 Fiber-reinforced plastic (FRP) - 150

Th is section presents manual and ‘schedule’ assisted calculations for design of systems. Th ere are now available computer supported design systems, such as ‘EPANET,’ a public domain software developed by the US Environmental Protection Authority, to help hydraulic analysis and modeling.

Table 10: Raw Water Treatment Processes

Treatment Process Description Used for (Water Quality)

Other Information

1. Sedimentation Th is process involves settling and removal of suspended particles when water stands still or when water fl ows slowly. Solid particles will drop to the bottom of the tank or storage, forming a sludge layer.

Turbid surface water Surface water with algae

Effi ciency of the settling tank depends on the fl ow rate of the raw water infl uent and the surface area of the tank. Th e ratio between the fl ow rate and the surface area should be in the range of 0.1 – 1 meter/hour.

Th e depth of the tank does not make a diff erence.

2. Chemical Coagulation and Flocculation

Fine particles and colloids may not settle like other suspended solids. Th is process uses chemicals to make them group together so that they can be removed by sedimentation or fi ltering.

Turbid surface waterSurface water with algae

Alum is a commonly used coagulant. Th is may sometimes require some alkalinity in the water, and so is mixed with lime or soda ash. Alum is eff ective in water that has a medium level of acidity. Iron salts are better coagulant for water that have extreme characteristics – i.e., high levels of acidity and basicity.

3. Aeration Th is process brings water into contact with air. By increasing the oxygen content, dissolved iron and manganese in the water reacts to become solids that can then be removed.

Ground water with iron and manganese

Water with spoiled odor and taste due to the presence of natural gases from break down of bacteria and organic material, such as methane and hydrogen sulfi de

Aeration is achieved by dispersing water through the air in thin drops, mixing water with air (bubble), or allowing water to cascade over a series of ponds.

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Treatment Process Description Used for (Water Quality)

Other Information

4. Rapid Filtration Th is process passes water through larger, coarse sand.


Turbid water

Rapid fi ltration will not remove pathogens.

5. Slow Sand Filtration Th is process passes water through fi ne sand that acts as a fi lter. Because of the fi ne size of the pores in the fi lter sand bed is eff ective in removing suspended solids and even pathogenic organisms. As the water passes through the layers, organic matter is broken down into inorganic material that are then fi ltered out.


Water with pathogens (bacteria, protozoa, virus)

Turbid water

Slow sand fi lters are quite eff ective and use no mechanical parts. Operations and maintenance are quite easy – cleaning only requires scraping off the top layer of the sand. However, because water has to pass through the fi lter at a slow rate, it will require space. Also, other reserve fi lters may be needed during cleaning as it will need 1-2 days to regenerate the bacteria that will break down organic matter.

6. Disinfection Th is process seeks to kill pathogenic organisms in the water. Disinfection includes boiling and use of ultraviolet rays from the sun, but these are most appropriate at the point of use. Adding chemicals, such as chlorine, is the most common way of disinfection.

Water with pathogens (bacteria, protozoa, virus)

Chlorine is a gas, and in water disinfection, it is usually in a compound that is in liquid or powder form. Chlorine compounds need to be stored in a dark, dry and cool place so that they do not lose their content. Chlorine is often drip-fed into the water supply storage.

Chlorinating the tank and pipes are also important before their use and for maintenance cleaning.

Th e EPANET software is included in the accompanying CD.

In designing the transmission and distribution of water, pipes represent some of the largest investments, so it is important to determine the most economical size of pipe and to select the appropriate material for the pipe.

a. Pipe diameter

Th e size of the pipe will depend on the rate of fl ow of water that needs to be conveyed, the length that water must travel and the acceptable amount of pressure loss. For a given rate of fl ow, larger pipe sizes will have less pressure losses, but are also more expensive.

Th ere are various formulae used to relate the rate of fl ow in the pipe with its size and the pressure drop due to friction as the water passes through the pipe. In this section, we discuss one of those formulae, the Hazen Williams formula:

Q = 0.2785 x C x D 2.63 x S 0.54

106

Q = rate of fl ow (in liters/second)C = roughness coeffi cient – see list of

“Roughness Coeffi cients for Diff erent Types of Pipe” (see list of

‘Roughness....’ Figure 26)D = diameter of pipe (in millimeters)S = slope (in percent) – the slope is

computed as the ratio between the change in elevation (H) and the length of the pipeline (L) in meters. Th e change in elevation is the diff erence between the elevation from point 1 to point 2 of the transmission.

Example 1: Given polyvinyl chloride (PVC) pipe in the following situation, the rates of fl ow in diff erent diameter pipes are show below. Th e slope (S) is calculated as = [(130-90)/3,500] x 100 or 1.14



Table 11: Example of Calculation on Rates of Flow Given Different PVC Pipe Sizes (Slope = 1.14)Pipe size in inches in millimeters Q (rate of fl ow) for C = 130 in l/s

1 25 mm 0.18 l/s1 ¼ 32 mm 0.35 l/s

1 1/2 40 mm 0.64 l/s2 50 mm 1.14 l/s

2 ½ 65 mm 2.28 l/s3 80 mm 3.93 l/s4 100 mm 7.07 l/s

Th e same calculation can be done using a prepared table:

ND 16 Ø 1/2 " 20 Ø 3/4 " 25 Ø 1 " 30 Ø 1 1/4 " 40 Ø 1 1/2 " 50 Ø 2 " 65 Ø 2 1/2 " 75 Ø 3" 100 Ø 4" 125 Ø 5"

17.6 120 22 120 28.2 120 35.2 120 44 120 55.4 120 66 120 79.2 120 96.8 120 110.2 120

Q V S V S V S V S V S V S V S V S V S V S (l/s) m/s m/100m m/s m/100m m/s m/100m m/s m/100m m/s m/100m m/s m/100m m/s m/100m m/s m/100m m/s m/100m m/s m/100m

0.02 0.08 0.12 0.04 0.16 0.43 0.11 0.15 0.06 0.04 0.06 0.25 0.91 0.16 0.31 0.10 0.09 0.08 0.33 1.55 0.21 0.52 0.13 0.16 0.10 0.41 2.35 0.26 0.79 0.16 0.24 0.10 0.08

0.20 0.82 8.48 0.53 2.86 0.32 0.85 0.21 0.29 0.13 0.10 0.30 1.23 17.96 0.79 6.06 0.48 1.81 0.31 0.61 0.20 0.21 0.12 0.07 0.40 1.64 30.61 1.05 10.32 0.64 3.08 0.41 1.05 0.26 0.35 0.17 0.11 0.50 2.06 46.27 1.32 15.61 0.80 4.66 0.51 1.58 0.33 0.53 0.21 0.17 0.15 0.07

0.60 2.47 64.85 1.58 21.87 0.96 6.53 0.62 2.22 0.39 0.75 0.25 0.24 0.18 0.10

0.70 2.88 86.28 1.84 29.10 1.12 8.68 0.72 2.95 0.46 0.99 0.29 0.32 0.20 0.14

0.80 3.29 110.49 2.11 37.26 1.28 11.12 0.82 3.78 0.53 1.27 0.33 0.41 0.23 0.18 0.16 0.07 0.90 3.70 137.42 2.37 46.35 1.44 13.83 0.93 4.70 0.59 1.58 0.37 0.52 0.26 0.22 0.18 0.09 1.00 2.63 56.33 1.60 16.81 1.03 5.71 0.66 1.93 0.42 0.63 0.29 0.27 0.20 0.11 1.10 2.90 67.21 1.76 20.06 1.13 6.81 0.72 2.30 0.46 0.75 0.32 0.32 0.22 0.13 1.20 3.16 78.96 1.92 23.56 1.23 8.00 0.79 2.70 0.50 0.88 0.35 0.37 0.24 0.15 1.30 3.42 91.58 2.08 27.33 1.34 9.28 0.86 3.13 0.54 1.02 0.38 0.43 0.26 0.18 1.40 3.68 105.05 2.24 31.35 1.44 10.65 0.92 3.59 0.58 1.17 0.41 0.50 0.28 0.21 1.50 3.95 119.37 2.40 35.62 1.54 12.10 0.99 4.08 0.62 1.33 0.44 0.57 0.30 0.23 1.60 4.21 134.52 2.56 40.14 1.64 13.63 1.05 4.60 0.66 1.50 0.47 0.64 0.32 0.26 0.22 0.10

1.70 2.72 44.91 1.75 15.25 1.12 5.14 0.71 1.67 0.50 0.71 0.35 0.29 0.23 0.11

1.80 2.88 49.93 1.85 16.96 1.18 5.72 0.75 1.86 0.53 0.79 0.37 0.33 0.24 0.12

1.90 3.04 55.19 1.95 18.74 1.25 6.32 0.79 2.06 0.56 0.88 0.39 0.36 0.26 0.14

2.00 3.20 60.69 2.06 20.61 1.32 6.95 0.83 2.26 0.58 0.96 0.41 0.40 0.27 0.15

2.20 3.52 72.40 2.26 24.59 1.45 8.29 0.91 2.70 0.64 1.15 0.45 0.47 0.30 0.18

2.40 3.84 85.06 2.47 28.89 1.58 9.74 1.00 3.17 0.70 1.35 0.49 0.56 0.33 0.21

2.60 4.16 98.65 2.67 33.50 1.71 11.30 1.08 3.68 0.76 1.57 0.53 0.65 0.35 0.24

2.80 4.49 113.17 2.88 38.43 1.84 12.96 1.16 4.22 0.82 1.80 0.57 0.74 0.38 0.28

3.00 4.81 128.59 3.08 43.67 1.97 14.73 1.25 4.80 0.88 2.04 0.61 0.84 0.41 0.32

3.50 5.61 171.08 3.60 58.10 2.30 19.59 1.45 6.38 1.02 2.72 0.71 1.12 0.48 0.42 0.37 0.22

4.00 4.11 74.40 2.63 25.09 1.66 8.17 1.17 3.48 0.81 1.43 0.54 0.54 0.42 0.29

4.50 4.63 92.53 2.96 31.21 1.87 10.16 1.32 4.33 0.91 1.78 0.61 0.67 0.47 0.36

5.00 5.14 112.47 3.29 37.93 2.08 12.35 1.46 5.26 1.02 2.17 0.68 0.82 0.52 0.43

5.50 5.65 134.19 3.62 45.26 2.28 14.73 1.61 6.28 1.12 2.58 0.75 0.97 0.58 0.52

6.00 6.17 157.65 3.95 53.17 2.49 17.31 1.75 7.38 1.22 3.04 0.82 1.14 0.63 0.61

6.50 4.28 61.67 2.70 20.08 1.90 8.56 1.32 3.52 0.88 1.32 0.68 0.70

7.00 4.61 70.74 2.91 23.03 2.05 9.82 1.42 4.04 0.95 1.52 0.73 0.81

7.50 4.93 80.38 3.11 26.17 2.19 11.15 1.52 4.59 1.02 1.73 0.79 0.92

8.00 5.26 90.58 3.32 29.49 2.34 12.57 1.62 5.17 1.09 1.95 0.84 1.03

8.50 5.59 101.35 3.53 33.00 2.49 14.06 1.73 5.79 1.16 2.18 0.89 1.16

9.00 3.74 36.68 2.63 15.63 1.83 6.43 1.22 2.42 0.94 1.29

9.50 3.94 40.54 2.78 17.28 1.93 7.11 1.29 2.68 1.00 1.42

10.00 4.15 44.58 2.92 19.00 2.03 7.82 1.36 2.94 1.05 1.56

Table 12: Hazen Williams Table on Pressure Loss

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ND 16 Ø 1/2 " 20 Ø 3/4 " 25 Ø 1 " 30 Ø 1 1/4 " 40 Ø 1 1/2 " 50 Ø 2 " 65 Ø 2 1/2 " 75 Ø 3" 100 Ø 4" 125 Ø 5"

17.6 120 22 120 28.2 120 35.2 120 44 120 55.4 120 66 120 79.2 120 96.8 120 110.2 120


10.50 4.36 48.80 3.07 20.80 2.13 8.56 1.43 3.22 1.10 1.71

11.50 4.77 57.75 3.36 24.62 2.34 10.13 1.56 3.81 1.21 2.03

12.50 5.19 67.40 3.66 28.73 2.54 11.82 1.70 4.45 1.31 2.37

13.50 5.60 77.72 3.95 33.13 2.74 13.63 1.84 5.13 1.42 2.73

14.50 4.24 37.82 2.94 15.56 1.97 5.85 1.52 3.11

15.50 4.53 42.79 3.15 17.61 2.11 6.62 1.63 3.52

16.50 4.83 48.04 3.35 19.77 2.24 7.44 1.73 3.96

17.50 5.12 53.57 3.55 22.04 2.38 8.29 1.84 4.41

18.50 5.41 59.38 3.76 24.43 2.52 9.19 1.94 4.89

19.50 3.96 26.93 2.65 10.13 2.05 5.39

20.50 4.16 29.55 2.79 11.12 2.15 5.91

22.50 4.57 35.11 3.06 13.21 2.36 7.03

24.50 4.98 41.10 3.33 15.47 2.57 8.23

26.50 5.38 47.53 3.60 17.89 2.78 9.51

28.50 3.87 20.47 2.99 10.88 30.50 4.15 23.21 3.20 12.34 40.50 5.51 39.24 4.25 20.87 50.50 6.87 59.04 5.30 31.40

For each size of pipe (indicated in the upper row), follow the column down to the value closest to the slope (indicated on the table as S). In our example, the slope was 1.14. Th en, follow the table to the left most column to the rate of fl ow (Q). In our manual calculation, Q = 0.18 liters/second.

Table 14: Hazen Williams Table on Pressure Loss (PVC 100-Meter Pipe)

ND 16 Ø 1/2 " 20 Ø 3/4 " 25 Ø 1 " 30 Ø 1 1/4 " 40 Ø 1 1/2 " 50 Ø 2 " 65 Ø 2 1/2 " 75 Ø 3" 100 Ø 4" 125 Ø 5"

17.6 120 22 120 28.2 120 35.2 120 44 120 55.4 120 66 120 79.2 120 96.8 120 110.2 120


0.02 0.08 0.12 0.04 0.16 0.43 0.11 0.15 0.06 0.04 0.06 0.25 0.91 0.16 0.31 0.10 0.09 0.08 0.33 1.55 0.21 0.52 0.13 0.16 0.10 0.41 2.35 0.26 0.79 0.16 0.24 0.10 0.08

0.20 0.82 8.48 0.53 2.86 0.32 0.85 0.21 0.29 0.13 0.10 0.30 1.23 17.96 0.79 6.06 0.48 1.81 0.31 0.61 0.20 0.21 0.12 0.07 0.40 1.64 30.61 1.05 10.32 0.64 3.08 0.41 1.05 0.26 0.35 0.17 0.11 0.50 2.06 46.27 1.32 15.61 0.80 4.66 0.51 1.58 0.33 0.53 0.21 0.17 0.15 0.07

0.60 2.47 64.85 1.58 21.87 0.96 6.53 0.62 2.22 0.39 0.75 0.25 0.24 0.18 0.10

0.70 2.88 86.28 1.84 29.10 1.12 8.68 0.72 2.95 0.46 0.99 0.29 0.32 0.20 0.14

0.80 3.29 110.49 2.11 37.26 1.28 11.12 0.82 3.78 0.53 1.27 0.33 0.41 0.23 0.18 0.16 0.07

0.90 3.70 137.42 2.37 46.35 1.44 13.83 0.93 4.70 0.59 1.58 0.37 0.52 0.26 0.22 0.18 0.09

1.00 2.63 56.33 1.60 16.81 1.03 5.71 0.66 1.93 0.42 0.63 0.29 0.27 0.20 0.11



Example 2: In the same example, given a daily maximum fl ow rate (Q) requirement of 1.05 l/s for the water supply system, what diameter pipe would the transmission need? Transposing the formula above, the formula for diameter is:

D = [

3.59 x 10 6 x Q

]

0.38

C x S 0.54

Using the data in the formula, we calculate that the ideal pipe diameter is 49 mm, or about 2 inches.

49 mm = [

3.59 x 10 6 x 1.05

]

0.38

130 x (1.14 0.54

)

Th e same answer can be derived using the prepared table. Th is time, start on the left most column to fi nd the desired rate of fl ow (Q). In this example, the maximum daily required fl ow is 1.05 l/s, which is approximately in between the encircled values (1.00 and 1.10). Follow the rows to the left to fi nd the closest values to the slope (earlier calculated as 1.14). Th en, follow the columns upward to fi nd the pipe diameter.


ND 16 Ø 1/2 " 20 Ø 3/4 " 25 Ø 1 " 30 Ø 1 1/4 " 40 Ø 1 1/2 " 50 Ø 2 " 65 Ø 2 1/2 " 75 Ø 3" 100 Ø 4" 125 Ø 5"

17.6 120 22 120 28.2 120 35.2 120 44 120 55.4 120 66 120 79.2 120 96.8 120 110.2 120


0.02 0.08 0.12 0.04 0.16 0.43 0.11 0.15 0.06 0.04 0.06 0.25 0.91 0.16 0.31 0.10 0.09 0.08 0.33 1.55 0.21 0.52 0.13 0.16 0.10 0.41 2.35 0.26 0.79 0.16 0.24 0.10 0.08

0.20 0.82 8.48 0.53 2.86 0.32 0.85 0.21 0.29 0.13 0.10 0.30 1.23 17.96 0.79 6.06 0.48 1.81 0.31 0.61 0.20 0.21 0.12 0.07 0.40 1.64 30.61 1.05 10.32 0.64 3.08 0.41 1.05 0.26 0.35 0.17 0.11 0.50 2.06 46.27 1.32 15.61 0.80 4.66 0.51 1.58 0.33 0.53 0.21 0.17 0.15 0.07

0.60 2.47 64.85 1.58 21.87 0.96 6.53 0.62 2.22 0.39 0.75 0.25 0.24 0.18 0.10

0.70 2.88 86.28 1.84 29.10 1.12 8.68 0.72 2.95 0.46 0.99 0.29 0.32 0.20 0.14

0.80 3.29 110.49 2.11 37.26 1.28 11.12 0.82 3.78 0.53 1.27 0.33 0.41 0.23 0.18 0.16 0.07

0.90 3.70 137.42 2.37 46.35 1.44 13.83 0.93 4.70 0.59 1.58 0.37 0.52 0.26 0.22 0.18 0.09

1.00 2.63 56.33 1.60 16.81 1.03 5.71 0.66 1.93 0.42 0.63 0.29 0.27 0.20 0.11

1.10 2.90 67.21 1.76 20.06 1.13 6.81 0.72 2.30 0.46 0.75 0.32 0.32 0.22 0.13

1.20 3.16 78.96 1.92 23.56 1.23 8.00 0.79 2.70 0.50 0.88 0.35 0.37 0.24 0.15

1.30 3.42 91.58 2.08 27.33 1.34 9.28 0.86 3.13 0.54 1.02 0.38 0.43 0.26 0.18

1.40 3.68 105.05 2.24 31.35 1.44 10.65 0.92 3.59 0.58 1.17 0.41 0.50 0.28 0.21

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b. Other issues

Often, transmission of water requires that it be pumped upwards to an overhead reservoir or to storage on an elevated area. In this case, the calculation of the required rate of fl ow will need to consider not only the diameter of the pipe, but also the pumping capacity. Th e calculation needs to be tried for diff erent pipe sizes to arrive at the least-cost option given the cost of pipe and pumping. In general, less pumping will be required for large diameter pipe.

Th e material of the pipe selected must be strong enough to withstand the highest pressure that can occur in the pipeline given the conditions of terrain. In many cases, pressure is limited by using ‘break pressure tanks’ that break up the pipeline into sections.

Pipelines are best laid where there are already existing rights of way – such as alongside the road to facilitate construction and maintenance.

c. Distribution system

General lay-out: Distribution systems are either branched or looped. In a branch system, the pipes protrude like sub-branches from main branches, while in a looped system, all the pipes in a given zone are interconnected in a grid. In larger distribution systems, it is ideal to have a looped or closed system, where water can be supplied from various nodes. In branch systems, the water fl ows in one direction only.

Piping: A simple way of estimating the pipe sizes for each sector (a length of pipe between two points or node in the system) is to:Step 1: estimate the rate of fl ow per meter

of distribution pipeStep 2: multiply the rate of fl ow to the total

length (in meter) of each sectorStep 3: compare that total rate of fl ow to

the maximum fl ow rate capacity of diff erent pipe sizes

Example: Number of people in the zone: 1500 persons

Peak hour fl ow rate per day:1500 persons x 50 liters = 75,000 liters/day or 0.87 liters/second0.87 lps x 1.8* = 1.56 liters/second

* is a factor used for peak fl ow

Total length of pipe: 100 meters

Section 1 50 metersSection 2 30 metersSection 3 20 meters

Step 1: rate of fl ow per meter of pipe 1.56 liters/second ÷ 100 meters =

0.0156 liters/second/meter Step 2: rate of fl ow per section Section 1 - 0.0156 liters/

second x 50 meters = 0.78 liters/second

Section 2- 0.0156 liters/second x 30 meters = 0.46 liters/second

Section 3- 0.0156 liters/second x 20 meters = 0.31 liters/second

Step 3: compare with maximum capacity of diff erent pipe sizes

Table 16: Capacity of Pipes

Pipe size in inches

in millimeters

Maximum capacity

1 ¼ 32 mm 0.6 l/s1 ½ 40 mm 0.9 l/s

2 50 mm 1.5 l/s2 ½ 65 mm 2.1 l/s

3 80 mm 3.4 l/s

Section Design fl ow Pipe sizeSection 1 0.78 l/s 1 ½ inchesSection 2 0.46 l/s 1 ¼ inchesSection 3 0.31 l/s 1 ¼ inches

Reservoir: Storage is very important to normalize the supply of water to the distribution system since water use varies during the diff erent hours of the day. Th e volume of the reservoir should be enough to accommodate the total diff erence between supply and water use (demand). Th is can be done by plotting in a table the hourly supply (based on a constant fl ow rate throughout the 24-hour day or throughout the hours when pumping is conducted) and the hourly water use for a 24 hour-period, which will vary during peak hours. Th e table below shows that the concentration of defi cit (when the supply cannot accommodate the hourly demand) falls between 5 to 11 am, and then again from 4 to 6 pm. Th e largest concentration of defi cit falls from 5 to 11 am, with a total of 22,600 liters, or about 19% of the total daily demand. Th is defi cit needs to be accommodated by storage. As a rule of thumb, a storage volume between 20% and 40% of the daily water demand should be generally adequate, but sometimes a larger capacity is necessary to accommodate water supply interruptions. Reservoirs need to be located on a higher elevation than the distribution area otherwise, it needs to be set up on a tower.

Figure 17: Drawing of Distribution System

Typical Water Supply System

Spring Box

BOV

BOV

BOV BOV

BOV

BOV

BOVOV

OVOV

OV

OV

OVOV

OVOV

OV

OV

OV

OV

OV

BOV

Ground Level Reservoir

Typical Water Supply System

Spring BoxGround Level Reservoir

BOV = Blowoff valves



Table 17: Example of Charting Hourly Flow Rates for Storage

Time SupplyDemand Surplus Defi cit Concentration of Defi cit

Factor Peak Hours Liters Liters Liters Liters

0 - 1 5,400 5,400

1 - 2 5,400 5,400

2 - 3 5,400 5,400

3 - 4 5,400 5,400

4 - 5 5,400 1 5,000 400

5 - 6 5,400 1.5 7,500 -2,100

-22,600

6 - 7 5,400 2 10,000 -4,600

7 - 8 5,400 2 10,000 -4,600

8 - 9 5,400 2 10,000 -4,600

9 - 10 5,400 2 10,000 -4,600

10 - 11 5,400 1.5 7,500 -2,100

11 - 12 5,400 1 5,000 400

12 - 13 5,400 1 5,000 400

13 - 14 5,400 1 5,000 400

14 - 15 5,400 1 5,000 400

15 - 16 5,400 1 5,000 400

16 - 17 5,400 2 10,000 -4,600- 920017 - 18 5,400 2 10,000 -4,600

18 - 19 5,400 1 5,000 400

19 - 20 5,400 1 5,000 400

20 - 21 5,400 1 5,000 400

21 - 22 5,400 5,400

22 - 23 5,400 5,400

23 - 24 5,400 5,400

129,600 120,000

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6B. Basic Operations and Maintenance

Chapter 6B.

Provides guidance for the operation and maintenance of• Intake• Water treatment• Transmission• Reservoir• Distribution system and public

water points

Available Tools:

• Troubleshooting

Th e proper operations and maintenance of the diff erent parts of the water supply system can go a long way to ensuring that the community continues to enjoy the benefi ts of clean water. Regular maintenance and timely repairs will let the system operate throughout its useful design life. Too often, maintenance is not undertaken regularly and repairs are not properly done. For example, if the intake is not cleaned regularly and broken pipe screens are not replaced, the quality of water is likely to suff er. Pipe bursts are often ‘repaired’ by tying rubber or plastic around it to stop the leaking, but rarely are replaced properly to ensure that the whole system functions properly. Poor operations and maintenance result in the system deteriorating faster than it should and lead to a great loss to the community and the CBO.

6.8. Financing Operations, Maintenance and Emergency Repairs

Besides the skills to operate and maintain the diff erent parts of the system, the CBO needs to have on hand appropriate tools and enough supplies to do replacements or repairs. It is, therefore, important that the water users are paying the appropriate tariff s so that the CBO has access to funds to undertake regular operations, maintenance and repairs.

Sometimes, even though proper maintenance is conducted, repairs can become more costly than expected, for example, in case of fl ooding or earthquakes where the facilities are damaged. It may be a good idea for the CBO to set aside an ‘emergency fund’ from small amounts of moneys collected regularly as part of the users’ fees/tariff s. Without accumulating small amounts of money throughout a long period of time, the usual problem becomes that when an emergency happens, the CBO only starts collecting money from the community at that point. Often, the requirements are too large that the community contribution for that time will not be enough. In a representative survey conducted by the project of 1000 water user respondents, the majority of users agree to contribute regularly towards an emergency fund.



6.9. Most Frequent Problems with the Water Intake

Illustration 3: Surface Water Intake Facility

6.10. Most Frequent Problems with the Spring Catchment (Bronkaptering)

Illustration 4: Spring Catchment

Figure 18: Bronkaptering

S E C T I O N A - A

P L A N D

W A T E R F L O W

Table 18: Common Problems and Maintenance for Water Intake

Frequent Problems Maintenance

Water is not transparent due to sediments

Daily cleaning of screen; draining and fl ushing of sediments as necessary, or if sludge reaches 10 cm from the bottom

Clogging of the inlet/outlet pipes Plant growth may be clogging the pipes. Inspect the intake and remove growing plants

Cracks in the intake building Inspect the cracks. If there are leaks, repairs are necessary to close up the holes. Otherwise, repainting with sealing paint/plaster will do

Repainting is necessary at least once a year, even without cracks to preserve the building

Fluctuation of water quantity Frequent measurement of the water level will alert the CBOs of permanent water issues that need to be addressed by structural solutions (e.g. additional reservoir) or increasing water debit

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Figure 18, continued

Possible Problems Maintenance Periods Gears and Manpower

Water fl ow is clogged or rate is slow

Fallen leaves and roots may be clogging the gallery.

An enclosed gallery is preferred. Regular cleaning of the gallery by hand and brush to remove leaves and other debris should be done

Clean surface around the spring structure to remove garbage, leaves and roots. A covered structure may be considered

Weekly Gear: brush, and blade2 peopleGears: hoe and shovel2 people

Gears: brush, wrench2-3 people

Gravel and sand carried by water fl ow may have built up and formed a mound that obstructs the pipes through which water fl ows.

Flatten the sand; remove sand

Inspect the level of sludge through the manhole.If the level is more than 10 cm, drain the basin by closing water inlet and water outlet and open drainages valve

Weekly

Monthly

Gears: brush, wrench2-3 people

Gears: pole, dipper2 people

Water has rotting odor, taste or turbid

Moss may be growing on the wall of the building

High level of sludge may have formed on the bottom

Clean the walls and basin fl oor so that it is free from sludge and moss

After the basin is clean, close the drainage valve and open valve for water inlet and outlet

As needed

Emergence of foam or fl oating debris on the water surface

Skim off debris and foam from the surface of water Weekly

Box 5: Solving Problems Together

Sumber Apak water supply and sanitation management board in Jambearjo village in the Tajinan subdistrict of Malang district was established on 6 May 2005 at a plenary village meeting. Although not yet a legal entity, Sumber Apak now (as of June 2010) has 1,010 household connections in Jambearjo village, Tajinan subdistrict and in Bululawang village, Bululawang subdistrict, Malang.

Th e water supply system we manage uses a pump and gravitation system (the water is pumped to a tank and then distributed to consumers by gravity), and all household connections have water meters. Th e people responsible for operating the system are appointed by the community, who also inform them of any problems with the system.

Although we have not had any problems with our water source, we have had problems with frequent, unexpected outages of electricity, which is supplied by the state-owned electricity utility PLN. Th is interferes with our water supply, because our pumps are not automatic (because of the distance involved, we cannot use a water level control between the well and collection tank). So our technical team has to take a note of when the pump is on and when it is off , so that we can calculate the additional water production needed for when it does go off unexpectedly. We have had very few problems with the collection tank and the pipes, other than someone who did not know where the pipe was, digging a hole and accidentally breaking the pipe (although the pipe was correctly installed). We dealt with this by mending the pipe.

When repairs or maintenance are too diffi cult for us, we consult the water supply and sanitation management board association, which has its own technical team, or we consult the supplier. We are still getting advice from district government about organizational matters.

Th e lessons we have learned are that everyone has skills, even villagers; one must search for information and use it; there must be a written procedure for every activity so that whoever is on duty can carry out whatever tasks needed to be done; and don’t make matters worse trying to do things that you can’t do – don’t be afraid ask for help, even from someone younger than you are – work together with everyone in a professional manner for the sake of our water supply and sanitation system.

Jauhari Fatkhur Ridlo, Secretary, Sumber Apak Water Supply and Sanitation Management Board



6.11. Most Frequent Problems with the Deep Well, Pump and Pump House

Illustration 5: A Typical Pump House in Rural Area Illustration 6: An Improved Pump House

It is a good idea to write down the operation and maintenance procedures for deep wells and display them close to the facility, such as inside the pump house.

Table 19: Common Problems and Maintenance of Deep Well and Pump

Problems Possible Causes Maintenance Deepwell and PumpScreen clogging Small debris are desposited on the screen Conduct high-pressure water spraying of every screen in the well

repeatedlyPump diffi cult to start; needs to be primed

a. For manually-primed pumps:- Suction valve may be clogged by garbage

or other things- Valve placement is exhausted

Remove the obstructing materials. If the inspection cover is equipped with drag chains, move this chain up and down from on the fl oor

Repair valve or replace with the new oneb. For vacuum pumps:

- Air trapped in the suction pipe connection or packing box

- Vacuum pump capacity reduced

- Repair packing glue or suction pipe connector - Tighten packing pressure- Repair water channel to the packing box- Repair or replace vacuum pump

Motor does not rotate after it is switched on

- Protector equipment is on - Replace the circuit if it is broken - If the circuit switch is open, then close it- If it is still not working, repair or replace

- Motor has been short circuited or burned - If the motor burned, repair or replace the motor- Th ere is obstruction in the pump - Remove materials that may be obstructing the pump motor

- Read the procedures on how to install and uninstall centrifugal pumps

Pump is working but water is not discharging or the fl ow is small

- Discharge valve is closed - Open the valve - Amount of water to prime the pump is not

enough - Check if the amount of water in the basin is enough - Check if there is any leakage in the suction valve- For the suction with pressure, open valve in the suction side if it is

closed - Pump rotates in the wrong direction - Switch the wire to change the direction - Th ere is air trapped in the pipe - Open air valve to release the trapped air

- Examine the slope of suction pipe, connection pipe, and packing box. Correct any problems found

- Th ere is clogging in the pipe - Remove the obstructing material- Th ere is signifi cant wearing on the pump

component - Repair and replace the worn component

- Suction head is too high - Compare pump level to water suction level. If needed, place the pump at a lower level

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Problems Possible Causes Maintenance - System head is too high compared to pump

head- Check if there are problems with the valve or suction pipe. Clean

up suction fi lter. If necessary, enlarge pipe diameter of suction pipe- Replace pipe system to reduce head loss at the outlet - Replace pump appropriate to specifi cation needed- Add more pump in a series

Motor gets low current of electricity

- Th e net tension is too low - Examine the net tension. If the tension is taken from a transformer, move the terminal to get higher tension

- For pumps rotated with a belt, the rotation may be too high/rapid

- Change belt to one that is better suited

Table 20: Common Problems and Maintenance of Pump House

Possible Problems Maintenance

Pump House

Construction cracks Conduct regular checks and do necessary repairs immediately

Standing water around the pump house Keep the surroundings of the house clear during each visit; make sure drains are not clogged

6.12. Most Frequent Problems with the Reservoir

Illustration 7: Reservoir

Table 21: Common Problems and Maintenance of Reservoir

Possible Problems Maintenance Practice Periods Gears and Manpower

Water has rotting odor, taste or turbid

Moss may be growing on the wall of the building

Clean the walls and basin fl oor so that it is free from sludge and moss. After the basin is clean, close the drainage valve and open valve for water inlet and outlet.

As needed Gears: brush, wrench2-3 people

High level of sludge may have formed on the bottom

Emerge of foam or fl oating debris on the water surface

Skim off debris and foam from the surface of water

Weekly Gears: pole, dipper2 people

Manhole is diffi cult to open Inspect the manhole lid and padlock for corrosion; lubricate

Monthly Gears: lubricant, padlock replacement1 person



Illustration 8: Electrical Safety 6.13. Electrical Safety and Most Frequent Problems with Generators

Table 22: Common Problems and Maintenance of Electrical Parts

Possible Problems Maintenance Electrical Safety

No power Immediately report to the closest offi ce of the electric company

Unstable voltage Ensure that you have the appropriate power

Have a professional look at the wiring; do not connect electrical wiring inappropriately

Avoid wires that are exposed/unprotectedGeneral safety Handle electrical equipment and wires with care and appropriate protection

Keep electrical equipment and wires out of children’s reach

Table 23: Common Problems and Maintenance of Generators

Possible Problems Maintenance Periods Generators

Abnormal sound from the genset Replace lubricant after 120 hours of usage. For new engine or engine that has just been overhauled, lubricate after the fi rst 60 hours.

Examine the lubricant content every time the engine is switched on.Genset cannot be started Examine lubricant from fuel pump anytime the engine is to be switch on

or every 60 hours.Engine shuts down suddenly from

time to time Replace lubricant every 120 hours or if lubricant becomes diluted with

any fuel that may have mixed into it.

Th ick smoke appears If the air fi lter used is ‘oil bath,’ examine the lubricant every 60 hours. Wash the fi lter and its components with light oil

First 60 hours of use and 120 hours thereafter

Genset is overheating Examine the old fi lter paper and its lubricant. If white metal ashes are visible, this indicates the wearing out of its casing. Immediate repair is needed if the damage is signifi cant.

6.14. Most Frequent Problems with Water Meters

Table 24: Common Problems and Maintenance of Water Meters

Possible problems Maintenance Periods Gears and Manpower Leakage in the pipe

connection (joints or ‘watermoor’, valve, elbows, etc)

Examine the connection. If there are no cracks or breaks, the connection needs to be tightened only. For connection between pipes (using joints), it is enough to use a wrench for tightening, but if the connection is to other equipment such as meters or pumps, the connectors may need to be replaced. Checking their condition should be done.

Every two weeks Gears: 2 sets of wrench, Materials : tape, padlock box water meter2 people

Examine if there is any leakage in the connection to the pipe. Monthly Water reading is inaccurate Water meters must be recalibrated every 5 years Every 5 years

Chapter References:

Depkimpraswil Balitbang, Norma Standard Pedoman Manual (NSPM) (2003)GTZ, Kumpulan Modul Pelatihan Operasi dan Pemeliharaan, (2007)International Reference Center for Community Water Supply and Sanitation, “Small Community Water Supplies: Technology of Small Water Supply Systems in Developing Countries” (1983)du Portal, Damien, “Tapping of a Spring Based on Deep Tapping” (2007)Schaum, Mekanika Fluida dan Hidrolika (1990)US Environmental Protection Agency, EPANET 2 USER MANUAL , National Risk Management (2000)http://www.watsan.co.cc

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Many CBOs have some form of records for what money is received and spent – this is a basic ‘cash receipts and disbursement’ system of recording. However, this system does not fully refl ect the true state of how the CBO is doing fi nancially – for example, in a month, the CBO may have received IDR 10 million from tariff collection, but spent the whole sum to build a small offi ce. For that month, it would seem that the CBO had IDR 0, but the truth is that it gained an asset that it could use for many years. Likewise, although many CBOs have a monthly record of who was billed and who has paid, the system is not very good at keeping track of balances by specifi c customers. Th e following section introduces a system especially developed for recording and reporting the fi nancial transactions of a community water supply business. It is meant to assist CBOs keep track of fi nancial transactions from month-to-month and help them summarize the information into the standard fi nancial reports (balance sheet and income statement) so that they can better understand and explain their fi nancial position to others.

Th e system builds from the ‘cash receipts and disbursements’ system, which CBOs are already familiar with, but adapts and combines it with standard accounting principles. All the input and report forms in this chapter are available in print so that they can be photocopied and used by the CBO. Th ey are also available in Microsoft Excel, which has an added feature of automating the calculations through linked worksheets.

7.1. Organizational Structure and Internal Controls

Based on the organizational structure in Chapter 5, additional functions are assigned to key CBO staff for fi nancial recording and reporting. Th ese functions are:

General ManagerTh e General Manager approves the payment of vouchers (used to authorize spending) and the fi nancial reports (i.e., balance sheet and income statement).

TreasurerTh e Treasurer acts as the cashier/collector by receiving all collections on behalf of the water utility. Th e Treasurer makes all payments for the water utility based on payment vouchers approved by the General Manager. Th e Treasurer prepares non-cash adjustments to the

7.

Chapter 7

• Assigns fi nancial recording and reporting functions to the key staff of the CBO

• Discusses internal controls• Explains the step-by-step process

of recording fi nancial transactions (receipt of cash, payments) up to summarizing the transactions into fi nancial reports

Available Tools:Financial Recording & Reporting System Forms:• Meter Reading Route• Water Tariff Table• ‘Bills for Collection’ Report• Customer Ledger Card• Water Bill• Offi cial Receipt• Cash Receipts Book• Payment Voucher• Cash Disbursement Book• Subsidiary Ledger• Accounts Summary• Adjustment Guide• Income Statement• Balance Sheet

Financial Recording and Reporting System



books of accounts and the resulting Income Statement and Balance Sheet.

SecretaryTh e Secretary acts as the bookkeeper of the utility. Th is person records all water bills issued in the Bills for Collection Report, all offi cial receipts issued to the Cash Receipts Book, and all payment vouchers made to the Cash Disbursements Book. Th e Secretary maintains the customers’ ledger cards and subsidiary cards. Th is person also partly fi lls up water bills which are completed by the meter reader after the reading.

Meter ReaderTh e Meter Reader reads the water meters of customers and completes the partially fi lled up water bills.

Among others, this division of functions ensures consistency with good practice of not allowing a single person to be in complete control of a fi nancial transaction – i.e., there is check and balance.

CBOs, who are dealing with signifi cant cash, should follow these basic principles

of internal control to prevent irregularities and misuse of funds and to ensure that their fi nancial reports are accurate:1. Th e accounting procedures and the

operations must be separated. 2. All available proof (e.g. receipts,

vouchers, etc.) of accuracy should be utilized, in order to assure correctness of operation and accounting.

3. No one person should be in complete control of a business transaction.

4. Employees must be carefully selected and trained.

5. If possible, employees holding sensitive positions should be rotated (such as meter readers, bill collectors, etc).

6. Operating instructions should be in writing.

7.2. General Flow and Terminologies

a. General Flow

In general, there are two tracks of funds fl ow – funds coming into the CBO as ‘receipts’ and funds being paid out by the CBO as ‘disbursements.’

Financial recording starts by capturing these basic infl ows and outfl ows using the basic accounting forms and recording the individual events in a ‘report.’ For example, a water bill (a basic form) is prepared and recorded in the Bills for Collection Report (a recording of many water bills). Offi cial Receipts are prepared for all cash collections and recorded in the Cash Receipts Book. Payment Vouchers are prepared for all cash payments and recorded in the Cash Disbursements Book.

Following the basic recording, at the end of each month, the reports are summarized in the Accounts Summary form. Adjustments may also be prepared in this form for non-cash transactions to have a more precise set of fi nancial statements by accounting for prepaid expenses, accounts payable and accrued expenses, interest payable and depreciation. Th e resulting balances of all accounts in the current month are then added to the balance in the previous month and then matched to whether the accounts fall under the Income Statement or the Balance Sheet. After this step is done, then the Income Statement and Balance Sheet reports can easily be prepared. Please see also Flow Chart 4 - Financial Reports Preparation.

b. Terminologies

Below are some common accounting terms and terms used in this Handbook and their defi nitions. In some cases, the defi nition also classifi es where this ‘account/entry’ falls under in the Income Statement or Balance Sheet.

Figure 19: Organizational Structure and Internal Controls

General Manager

SecretaryTreasurer Head of Technical Operations

Meter Reader

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Table 25: Financial Defi nition and Terms Used

Term Defi nition

Accounts Payable Accounts Payable are routine expenses that have already been incurred but not yet paid. Th e fact that the expense has been ‘incurred’ is evidenced by the supplier’s invoice or statement of account.

Accounts Receivable Accounts Receivable represents the balance of water bills not yet collected from customers.

Th is is entered as a Current Asset.

Accounts Summary Th e Accounts Summary is a worksheet where all accounts of the water utility from the Bills for Collection Report, Cash Receipts Book and Cash Disbursements Book are posted. Th is worksheet also allows for special adjusting entries. Th e Balance Sheet and Income Statement are prepared based on this Accounts Summary.

Accrued Expenses Accrued Expenses are routine expense that have already been incurred but not yet paid and unlike the ‘Accounts Payable’ have not been recorded in the fi nancial statement for the period because no invoice or statement of account has yet been received.

Accumulated Depreciation In common use, ‘depreciation’ is the reduction in value of a fi xed asset due to wear and tear and passage of time.

Using this principle, in accounting, the cost of a fi xed asset is usually spread over the number of years that the asset can be used (useful life). Th e cost attributed for one year is called ‘depreciation.’

Accumulated Depreciation refers to the sum of the year-to-year depreciation for the period that the asset has been used.

So ‘net asset value’ is the cost of the asset minus ‘Accumulated Depreciation.’

Accumulated Depreciation is presented in the Balance Sheet as a deduction to ‘Fixed Assets at cost.’

Administration Fee Th e Administration Fee represents a charge imposed on all customers during the specifi ed period for the administration of the billing and collection of accounts of customers.

Advances Advances are payments made to either employees or third parties with the intention of collecting them back within one year.

An example would be a cash advance given to the Village Head to help the village decorate for Lebaran. Th e amount is expected to be returned by the Village Head when the budget for decorations are available from the Government.

Th is is a Current Asset account.

Amortization Amortization refers to that portion of a loan that is repaid periodically until the loan is fully paid. Th is does not include the interest on the loan.

Assets Assets are any resource controlled by the CBO to derive benefi ts. As presented in the Balance Sheet in this Handbook, assets can be Current Assets or Fixed Assets.

Current Assets are cash and other assets that may be converted to cash, sold or consumed within one year. Examples are Accounts Receivable, Advances to Employees, Advances to Th ird Parties, Merchandise Inventory and Prepaid Expenses.

Fixed Assets are acquired for continued and long-term use in the operations of the CBO. Examples are land, buildings, pumps, furniture, and vehicles.

Balance Sheet Th e Balance Sheet is a fi nancial report showing the fi nancial condition of the company as of a specifi c day (for example “as of December 31, 2009”). It is normally prepared as of the end of the fi nancial year at the same time as the Income Statement. It may also be prepared any time of the year. It summarizes the balances of Assets, Liabilities and Capital as of the specifi ed date.

Bills for Collection Report Th e Bills for Collection Report contains all Water Bills issued within a month. It is recorded in the numerical sequence following the water bill to ensure completeness. It is summarized monthly and the totals (per account) are posted to the ‘Accounts Summary Form’.

Capital Capital represents equity contribution of the owners in the CBO as well as donations from government and donors. Capital also includes Retained Earnings and the current Net Income. (See defi nition below)



Term Defi nition

Cash Disbursements Book Th e Cash Disbursements Book contains all Payment Vouchers issued. It is recorded in numerical sequence to ensure that all payments are recorded. It is summarized monthly and the totals (per account) are posted to the Accounts Summary form.

Cash Receipts Book Th e Cash Receipts Book contains all Offi cial Receipts issued for all cash collections. Recording Offi cial Receipts in numerical sequence, including all canceled or spoiled Offi cial Receipts, ensures that all collections are accounted for. It is summarized monthly and the totals (per account) are posted to the Accounts Summary Form.

Chemicals and Filter Chemicals and Filter account is for the cost of chemicals and fi lters used in water treatment.

Construction Work in Progress

Th e Construction Work in Progress account represents the total cost incurred for assets for which construction has started but not yet completed and commissioned.

Current Assets See Assets

Current Liabilities Current Liabilities represent amounts due to third parties within one year. Examples of accounts falling under this classifi cation are Accounts Payable, Accrued Expenses, Current Portion of Loans Payable and Interest Payable.

Customer’s Ledger Card Customer’s Ledger Card provides details about each customer’s bills and payments. It is a special kind of Subsidiary Ledger because of the many details shown in the card.

If one sums up the balances of all Customers’ Ledger Cards, they should tally with the Accounts Receivable account (a General Ledger account).

Depreciation See Accumulated Depreciation above

Electricity Electricity is the amount paid for electricity consumed for the offi ce and for water production and distribution.

Fixed Assets See Assets

Fuel Fuel is the amount of gas, diesel and oil for the water utility’s vehicles and generators and any other equipment used for the CBO operations.

General Administrative Expenses

General Administrative Expenses account is for all expenses not specifi cally identifi ed for water production or distribution but is important in the operations of the water utility. Th is account may include offi ce supplies, transportation expenses, representation expenses, and refreshments during meetings.

Th is does not include expenses incurred that do not support the business of CBOs, such as contributions to a village party. Th ese expenses are classifi ed as ‘Non-Operating Expenses’.

General Ledger A General Ledger is a record of the movement of an account in the Balance Sheet and Income Statement. It contains additions and deductions and the balance of the account at any time.

Income In common usage, “income” is often interchanged with “revenue”. In accounting, “income” refers to net income, where expenses have been deducted from revenues.

Income Statement Th e Income Statement is a fi nancial report of the operations of the company over a period of time (like “For the Year Ending December 31, 2009”). Normally, this is prepared at the end of the fi nancial year of the company. It may also be prepared monthly, quarterly or as often as needed. It contains the total revenues earned and corresponding expenses incurred during the specifi ed period. Th e resulting net income or loss goes into the Balance Sheet (Capital portion).

Interest Expense Interest Expense is the cost of borrowed money or a loan. In the Income Statement, this amount should be the cost of borrowed money corresponding to the reporting period of the income statement. It is not necessarily the actual amount paid, which may be less or more than the amount due for the period.

Interest Payable Interest Payable represents the amount of interest due and unpaid as of the Balance Sheet date. Th is is entered as a Current Liabilities account.

Loan Amortization Table Th e Loan Amortization Table shows the schedule of loan repayment. It includes the due date, the amortization and the interest due for each due date. It also shows the remaining Principal balance after the payment on or before the due date.

Loans Payable Loans Payable account refers to obligations of the company that have to be paid, but whose due dates fall beyond the current fi nancial year.

If a loan needs to be paid over 5 years, the portion of the loan that is due during the fi nancial year falls under ‘Current Portion of Loans Payable.’ Th e balance of the loan not yet due is presented under ‘Loans Payable’ classifi ed as ‘Long-term Liabilities.’

55www.wsp.org


Term Defi nition

Long-term Liabilities Long-term Liabilities represent obligations that are payable beyond one year.

If a loan needs to be paid over 5 years, the portion of the loan that is due in future fi nancial years is a ‘long-term liability.’

Merchandise Inventory Merchandise Inventory represents items that will be sold to customers within a year, like water meters, gate valves, pipes and fi ttings. Th is is a Current Asset account.

Meter Maintenance Fee Meter Maintenance Fee represents a charge imposed on all customers during the specifi ed period for the calibration or repair of water meters.

Meter Reading Route Th e Meter Reading Route is the sequence of water meters that will be read by the meter reader as he goes from one road to another. It is prepared to guide the sequence of the water bills to be issued so that the next water meter to be read is also the next water bill in the meter reader’s booklet.

Meter Rental Fee Meter Rental Fee represents charges to customers during the specifi ed period for renting out water meters. Th is is imposed by a CBO on connections where the water meter is owned by the CBO and not the customer.

Net Income Net Income is the bottom line in an Income Statement. It represents the diff erence between all the revenues generated and all the expenses incurred over a specifi ed period. It may also be defi ned as Net Operating Income after deducting Depreciation, Interest Expense and non-operating income/expenses.

Net Operating Income Net Operating Income is the diff erence between Operating Revenues and Operating Expenses.

New Connection Fees New Connection Fees represent the fees collected from new customers to cover the cost of labor, materials and a small income in installing the connection.

Offi cial Receipt Th e Offi cial Receipt is the document issued by the Treasurer for all cash collections. It is issued and recorded in numerical sequence to ensure that all collections are completely recorded in the Cash Receipts Book.

Operating Expenses Operating Expenses are the day-to-day expenses of running the water utility. In the Income Statement, this is the sum of Salaries, Rent, Electricity, Fuel, Chemicals and Filter, Repairs and Maintenance, General Administrative Expenses and Other Expenses.

Operating Revenues Operating Revenues represents all income generated by the water utility from its water operations. Th is includes Water Revenues, Meter Rental Fees or Meter Maintenance Fees, Administration Fees and New Connection Fees.

Other Current Assets Other Current Asset account holds all other assets that may be converted to cash or whose benefi ts can be realized within one year that cannot be classifi ed in the specifi c Current Asset accounts defi ned above.

Other Current Liabilities Other Current Liabilities account represents all other obligations due to be paid within one year that cannot be properly classifi ed in the specifi c Current Liabilities accounts shown in the Balance Sheet.

Other Expenses Other Expenses account may be used for all other operating expenses that cannot be classifi ed in the specifi c Operating Expense accounts in the Income Statement.

Other Operating Revenues Other Operating Revenues account represents all other revenue accounts not specifi cally identifi ed in the Operating Revenues section of the Income Statement.

Payment Voucher Th e Payment Voucher is the document prepared for all cash payments made by the Treasurer. It contains the particulars for the payment and duly supported by the proper invoices or documents. It also contains all approvals required before the payment is released.

Penalties Th e Penalties account represents the sum of all penalties imposed on late payment of water bills from customers.

Prepaid Expenses Prepaid Expenses are expenses that have been paid already but which benefi t periods after the date of payment, usually not beyond one year. An example is Prepaid Rent. Th is is a Current Asset account.

Principal Principal refers to the amount of loan borrowed.

Rent Rent is the payment for the use of some land, building or any other asset belonging to a third party to be used for the operations of the CBO.

Repairs and Maintenance Repairs and Maintenance account is for the cost of putting an asset in good condition so that it can be productively used in operations.

Retained Earnings Retained Earnings are the accumulation of income and losses over the years that the CBO has been in operation – i.e. the year-to-year Net Income (or Loss) is accumulated in this account.



Term Defi nition

Revenue Revenue is income from activities that are normally done by the CBO. For accounting purposes, revenues appear in the top part of the Income Statement, while net income appears at the bottom after expenses have been deducted from revenues.

Salaries Salaries account is the accumulated payment for services of employees of the water utility. It includes all personnel benefi ts and allowances attached to their service.

Statement of Receipts and Disbursements

Th e Statement of Receipts and Disbursements is a fi nancial report that summarizes all types of cash received and all types of cash payments made during a specifi ed period. It accounts how the Cash account moved during the specifi ed period. Th e bottom line of this report is the Cash balance available at the end of the period. Th is amount may not be the same as the bottom line of the Income Statement which is the Net Income for the period. Cash received may include collection of water sales and penalties. It may also include collection of advances from employees and third parties and even collection of loan proceeds. So cash received may either be revenues, a reduction of assets or an addition to liabilities. Cash payments may include payment of loans, purchase of assets and payment of expenses. So payments may either be expenses or a reduction of liabilities or an addition to assets.

Owner’s Equity Stockholders’ Equity represents the value of the initial investments made by the owners of the company into the business.

Subsidiary Ledger A Subsidiary Ledger is a complementary record providing the details of the movement of an account under the General Ledger.

For example, the General Ledger account “Advances to Employees” is supported by Subsidiary Ledgers for all the employees that have received cash advances. Th is makes monitoring of the status of cash advances easier. Th e sum of all the Subsidiary Ledgers for a specifi c account should tally with its General Ledger account at any time.

Water Bill A Water Bill is a document issued to show customers their water consumption over a specifi ed period and the equivalent amount they should pay. It may also contain the customer’s previous unpaid balance, as well as other charges imposed like the Meter Maintenance Fee and Administration Fee.

Water Rates Table Th e Water Rates Table shows the approved water rates of the CBO. It is used in computing the water bill based on the consumption of the customer. Th is is interchangeably called “Water Tariff Table”.

Water Revenues Water Revenues account represents all water sold by the CBO within the specifi ed period. Water sold may be coming from metered connections or not.

Water Tariff Table See Water Rates Table

7.3. Billing Procedures

Refer to Flow Chart 1 – Billing Procedures

Person Responsible Activity

Secretary 1 Based on the sequence of the meter reading route, prepares Water Bill in triplicate by fi lling up these data coming from the Customers’ Ledger Cards:Customer account number Name of customerAddress of customer

2 Fills up the due date for payment of the Water Bill

3 Retrieves the Customers’ Ledger Cards and copies these data into the Water Bill: Meter serial number Meter size Previous month’s meter reading Amount of unpaid bills Penalty on unpaid bills, if applicable

4 Writes the amount of these standard fees in the Water Bill: Meter Maintenance Fee Administration Fee

Secretary 5 Gives partially fi lled up water bills to the meter reader

57www.wsp.org



Meter Reader 6 Goes to the consumers’ service addresses with the Water Rates Table and the pre-fi lled up Water Bills. Reads the water meter (checks that the meter number on the meter is the same as that in the Water Bill) and completes the water bill with these data:Meter reading dateCurrent meter readingVolume consumed this period, computed as

Meter reading, this monthLess: Meter reading, last month

Amount of consumption for this month, by fi nding the equivalent water bill for the volume consumed in the Water Rates Table

Water Bill for this month, by adding these:Rupiah equivalent of consumption for the monthMeter maintenance fee Administration fee

Total Water Bill, by adding:Water Bill for this monthUnpaid bills as of last monthPenalty

7 Initials the water bill

8 Gives Copy 1 of the Water Bill to the consumer

9 Returns to the Offi ce, submits the completed Water Bills to: Copy 2 to the Cashier/Treasurer for collection Copy 3 to the Secretary for posting to Customer’s Ledger Cards

Secretary 10 Posts completed Water Bills in corresponding Customer’s Ledger Cards

11 After the meter reading and billing cycle for the month is completed, records all water bills issued in the Bills for Collection Report and submits this to the Treasurer

7.4. Collection Procedures

Refer to Flow Chart 2 – Collection Procedures


Treasurer 1 Receives Copy 2 of Water Bills from the Meter Reader

Paying Customer 2 Presents Water Bill copy 1 to Treasurer/Cashier together with cash payment

Treasurer 3 Receives Water Bill copy 1 from Customer. Retrieves Water Bill copy 2 for the paying customer from fi les

4 Checks payment against the Water Bill

5 Issues Offi cial Receipt in 3 copies which are distributed as follows: 1 - Paying Customer 2 - Bookkeeper 3 - Stub File

6 At the end of the day, forwards Offi cial Receipts (copy 2) to the Secretary

Secretary 7 Records Offi cial Receipt (copy 2) in Cash Receipts Book

8 Posts each Offi cial Receipt in the corresponding Customer’s Ledger Cards

9 Files Offi cial Receipts numerically



7.5. Payment Procedures

Refer to Flow Chart 3 – Payment Procedures


Treasurer 1 Prepares a Payment Voucher in 2 copies based on supporting documents

General Manager 2 Approves the Payment Voucher

Treasurer 3 Releases payment for the Payment Voucher, and distributes it to: 1 – Secretary/Bookkeeper, together with supporting documents 2 - Files numerically

Secretary 4 Records the Payment Voucher in the Cash Disbursements Book

5 Records the Payment Voucher in subsidiary ledgers, where applicable

6 Files the Payment Voucher with its supporting documents by Payment Voucher number

7.6. Financial Reports Preparation Procedures

Refer to Flow Chart 4 – Financial Reports Preparation


Treasurer 1 Prepares the beginning balances for the Accounts Summary

2 At the end of the month, gets totals of all money columns in the following books/report: - Bills for Collection Report - Cash Receipts Book - Cash Disbursements Book

3 Posts totals of these books/report to the Accounts Summary

4 Prepares adjustments for - prepaid expenses- accrued expenses- depreciation

5 Posts adjustments to the Accounts Summary

6 Extends totals of accounts in the Accounts Summary to the Income Statement columns and Balance Sheet Columns

7 Prepares these fi nancial reports: - Income Statement - Balance Sheet

59www.wsp.org


Flo

w C

hart

1. B

illin

g P

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dur

es



Flo

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hart

2. C

olle

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roce

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e

61www.wsp.org


Flo

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63www.wsp.org


Exhibit 1. Meter Reading Route

Exhibit 2. Water Tariff Table

Badan Pengelola Sarana Air Bersih Tirta ManggalaCianjur, Kabupaten Jawa Barat

Water Tariff Table

Category 0 - 10 m3 11 - 20 m3 > 20 m3 0 - 100 m3 101 - 200 m3 > 200 m3

Residential 1,000 1,500 2,000

Commercial 1,500 3,000 4,500

Social 500 1,000 1,500

Public Taps 500 500 500



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for

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ate:

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65www.wsp.org


Exh

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Exhibit 5. Water Bill

Customer Name

Public Tap

Meter reading this month cubic meters

Meter reading last month cubic meters

Consumption this month = cubic meters

Total Amount of Consumption Rupiah

Meter Maintenance Fee Rupiah

Administration Fee Rupiah

Water bill this month Rupiah

Unpaid water bill as of last month * + Rupiah

Penalty * + Rupiah

TOTAL WATER BILL DUE = Rupiah

If the unpaid water bill last month has been settled, the amount due will only be the water bill for this month .

Prepared by

Secretary Meter Reader

JL Belok No 2 Desa Banjar Selir

Meter Size Meter Brand Meter Serial No.

Badan Pengelola Sarana Air BersihTirta Manggala

Cianjur, Kabupaten Jawa Barat

Account Number Meter Reading Date Due Date

0021/5/2009

1/20/2009

Customer Address

Warung Pojok 1/2" Asahi 12341

Social Residential Commercial

Con

sum

ptio

n

415

382

33

Amou

nt D

ue

51,000

2,500

1,000

54,500

-

-

54,500

THIS IS NOT A PROOF OF PAYMENT.

RA-09-01-003

Distribution: 1 – Customer; 2 – Treasurer; 3 – Stub File

67www.wsp.org


Exhibit 6. Offi cial Receipt

Badan Pengelola Sarana Air BersihTirta Manggala

Cianjur, Kabupaten Jawa BaratOFFICIAL RECEIPT

Received from

Warung Pojok

Customer Account No.002

Th e sum of

Rupiah fi fty-four thousand fi ve hundred only

Rp

54,500

In payment for

Water bill

Water Bill # Total Water Bill, Current Water Bill, Arrears Penalty Others

RA-09-01-001 54,500 54,500

Received by

Treasurer

Date Received

16-Jan-09

OR-12303

1 - Payor 2 - Bookkeeper 3 - Stub File

LEGEND:RA Rekening Air or Water Bill



Exh

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00

31-Ja

n-09

-(2

0,00

0,00

0)20

,000

,000

4,7

75,5

0020

,000

,000

23

,475

,500

1,

300,

000

LEG

END

:R

A Re

keni

ng A

ir or

Wat

er B

illO

R O

ffi ci

al R

ecei

pt

69www.wsp.org


Exhibit 8. Payment Voucher

Badan Pengelola Sarana Air Bersih

Tirta ManggalaCianjur, Kabupaten Jawa Barat

PAYMENT VOUCHER

Paid to

Dina

Date

30-Jan-09

Th e sum of

Rupiah two million two hundred fi fty thousand

Amount

2,250,000

In payment for

Payroll for January 2009

Salaries 2,600,000

Less: Collection of loan to employees (350,000)

Net cash payment 2,250,000

Accounts Charged Amount

Salaries 2,600,000

Advances to Employees (350,000)

Total 2,250,000

Prepared by: Treasurer

Approved by: General Manager

Payment received by: Signature Over Printed Name

PV No. 09-01-8



Exh

ibit

9. C

ash

Dis

bur

sem

ents

Bo

ok

Bada

n Pe

ngel

ola

Sara

na A

ir Be

rsih

Tir

ta M

angg

ala

Cia

njur

, Kab

upat

en Ja

wa

Bara

t

CA

SH D

ISB

UR

SEM

ENT

S B

OO

KFo

r the

Mon

th o

f Jan

uary

200

9

Expe

nse

Acco

unts

Bala

nce

Shee

t Acc

ount

s

Dat

e P

ayee

D

escr

ipti

on

Cas

h Vo

uche

r N

umbe

r

Cas

h O

n H

and

Cas

h In

B

ank

Sala

ries

R e

n t

Elec

tric

ity

Fuel

Che

mic

als

and

Filt

erR

epai

rs a

nd

Mai

nten

ance

Gen

eral

A

dmin

istr

ativ

e Ex

pens

esIn

tere

stO

ther

Ex

pens

es

Am

ount

Inco

me

Stat

emen

t A

ccou

nt 1/

Add

itio

ns

Am

ount

Ded

ucti

ons

Am

ount

Bal

ance

She

et A

ccou

nt 2/

5-Ja

n-09

Pert

amin

a G

as a

nd o

il fo

r veh

icle

s P

V 0

9-01

-1

500,

000

500,

000

5-

Jan-

09C

V Ja

ya

12 n

ew c

onne

ctio

ns

insta

lled

PV

09-

01-2

12,

000,

000

12,

000,

000

S

ervi

ce

Con

nect

ions

6-

Jan-

09Si

nar T

eran

g Pu

rcha

se o

f pip

es fo

r lea

k re

pairs

P

V 0

9-01

-3

200,

000

200,

000

6-Ja

n-09

Sina

r Ter

ang

Purc

hase

of 2

0 m

of

50 m

m P

VC

pip

es to

ex

tend

net

wor

k at

Jl.

Berk

elok

PV

09-

01-4

5,00

0,00

0

5,

000,

000

P

ipel

ines

10-Ja

n-09

Ali

Dec

orat

ion

of v

illag

e ga

te

for N

ew Y

ear

PV

09-

01-5

50

0,00

0

500,

000

Don

atio

ns

11-Ja

n-09

Ali

Adva

nces

for a

dditi

onal

ex

pens

es fo

r New

Yea

r P

V 0

9-01

-6

1,00

0,00

0

1,00

0,00

0

Adv

ance

s to

Th ird

Par

ties

(Des

a)

12-Ja

n-09

Kim

ia F

arm

a C

hlor

ine

for w

ater

tre

atm

ent

PV

09-

01-7

15

0,00

0

150,

000

15-Ja

n-09

CV

Bin

tang

Pl

umbi

ng su

pplie

s P

V 0

9-01

-8

300,

000

300,

000

20

-Jan-

09C

V S

inar

O

ffi ce

supp

lies

PV

09-

01-9

10

,000

10,0

00

29-Ja

n-09

PT Y

amah

a In

done

sia

Purc

hase

of m

otor

cycl

e w

ith d

own

paym

ent

of R

p 10

mill

ion

and

bala

nce

on c

redi

t

PV

09-

01-1

0

10,0

00,0

00

90,

000,

000

V

ehic

le

(Mot

orcy

cle)

28-Ja

n-09

BRI

Paym

ent o

f loa

n fro

m

BRI

PV

09-

01-1

1

5,50

0,00

0

500,

000

5,

000,

000

Loa

ns P

ayab

le

30-Ja

n-09

Din

a (T

ugas

G

aji)

Payr

oll f

or Ja

nuar

y 20

09

PV

09-

01-1

2 2,

250,

000

2,

600,

000

350,

000

Adv

ance

s to

Empl

oyee

s

4,

910,

000

32,

500,

000

2,60

0,00

0 -

-50

0,00

0 15

0,00

0 50

0,00

0 10

,000

50

0,00

0 50

0,00

0

188,

000,

000

5,35

0,00

0

Not

e 1:

Inco

me

Stat

emen

t Acc

ount

sN

ote

2: B

alan

ce S

heet

Acc

ount

sIn

com

e A

ccou

nts

Exp

ense

Acc

ount

s C

urre

nt A

sset

sFi

xed

Ass

ets

Liab

iliti

esC

apit

alW

ater

Rev

enue

sM

eter

Ren

tal F

eeAd

min

istra

tion

Fee

New

Con

nect

ion

Fees

Pena

lties

Oth

er O

pera

ting

Reve

nues

Sal

arie

s R

e n

t E

lect

ricity

F

uel

Che

mic

als a

nd F

ilter

R

epai

rs a

nd

Mai

nten

ance

G

ener

al A

dmin

istra

tive

Expe

nses

O

ther

Exp

ense

s

Cas

h on

Han

d C

ash

in B

ank

Acc

ount

s Rec

eiva

ble

Adv

ance

s to

Empl

oyee

s A

dvan

ces t

o Th

ird P

artie

s M

erch

andi

se In

vent

ory

Pre

paid

Exp

ense

s O

ther

Cur

rent

Ass

ets

Land

Build

ing

Dee

pwel

ls an

d Pu

mp

Hou

ses

Pum

ping

Equ

ipm

ent

Rese

rvoi

rPi

pelin

esSe

rvic

e C

onne

ctio

nsO

ffi ce

Fur

nitu

re a

nd

Fixt

ures

Offi

ce E

quip

men

tVe

hicl

esAc

cum

ulat

ed

Dep

reci

atio

nC

onstr

uctio

n W

ork

in

Prog

ress

Acco

unts

Paya

ble

Accr

ued

Expe

nses

Inte

rest

Paya

ble

Oth

er C

urre

nt

Liab

ilitie

sLo

ans P

ayab

le

Stoc

khol

ders’

Equ

ityRe

tain

ed E

arni

ngs

71www.wsp.org


Exhibit 10. Subsidiary Ledger

Badan Pengelola Sarana Air BersihTirta ManggalaCianjur, Kabupaten Jawa Barat

SUBSIDIARY LEDGER

Account Name: Prepaid Rent

Payee:

Date Particulars Reference Debit Credit Balance

7/31/2008 Advance rent for Aug-08 to Jul-09 PV 08-07-15 24,000,000 24,000,000

12/31/2008 Expense portion, August - December 2008 Adj #10 10,000,000 14,000,000

1/31/2009 Expense portion, Jan-09 Adj #1 2,000,000 12,000,000

Note: See also Exhibit 12 Adjusments Guide



Exh

ibit

11. A

cco

unts

Sum

mar

y

Bada

n Pe

ngel

ola

Sara

na A

ir Be

rsih

Tir

ta M

angg

ala

Cia

njur

, Kab

upat

en Ja

wa

Bara

t

Acc

ount

s Sum

mar

yJa

nuar

y 31

, 200

9

Acco

unt T

itle

Bal

ance

12-3

1-08

Add

ition

s D

educ

tions

A

djus

ted

Bala

nce

1-31

-09

Che

ckin

g C

olum

ns

Bal

ance

She

et

Inco

me

Stat

emen

t R

efer

ence

A

mou

nt

Ref

eren

ce

Am

ount

A

sset

s &

Expe

nses

Lia

bilit

ies,

Equi

ty,

Reve

nues

B

ALA

NC

E SH

EET

AC

CO

UN

TS

Cur

rent

Ass

etC

ash

on H

and

300,

000

CR

B Ja

n-09

(7,1

47,5

00)

CD

B Ja

n-09

4

,910

,000

(1

1,75

7,50

0) (1

1,75

7,50

0)

(11,

757,

500)

Cas

h in

Ban

k15

,000

,000

C

RB

Jan-

09

20,0

00,0

00

CD

B Ja

n-09

32

,500

,000

2

,500

,000

2

,500

,000

2,5

00,0

00

Ac

coun

ts Re

ceiv

able

2,0

00,0

00

BFC

Jan-

09

11,9

96,1

51

CR

B Ja

n-09

11

,552

,500

2

,443

,651

2

,443

,651

2,4

43,6

51

Ad

vanc

es to

Em

ploy

ees

3,8

00,0

00

CR

B Ja

n-09

30

0,00

0 3

,150

,000

3

,150

,000

3,1

50,0

00

C

DB

Jan-

09

350,

000

-

Ad

vanc

es to

Th i

rd P

artie

s

CD

B Ja

n-09

1,

000,

000

1,0

00,0

00

1,0

00,0

00

1

,000

,000

Mer

chan

dise

Inve

ntor

y 1

,200

,000

1

,200

,000

1

,200

,000

1,2

00,0

00

Pr

epai

d Ex

pens

es14

,000

,000

A

dj #

1 2

,000

,000

12

,000

,000

12

,000

,000

12,0

00,0

00

O

ther

Cur

rent

Ass

ets

5,0

00,0

00

5,0

00,0

00

5,0

00,0

00

5

,000

,000

-

Fi

xed

Ass

ets

Land

50,0

00,0

00

50,0

00,0

00

50,0

00,0

00

50

,000

,000

Build

ing

500,

000,

000

500,

000,

000

500,

000,

000

50

0,00

0,00

0

Dee

pwel

ls an

d Pu

mp

Hou

ses

150,

000,

000

150,

000,

000

150,

000,

000

15

0,00

0,00

0

Pum

ping

Equ

ipm

ent

5,0

00,0

00

5,0

00,0

00

5,0

00,0

00

5

,000

,000

Rese

rvoi

r20

,000

,000

20

,000

,000

20

,000

,000

20,0

00,0

00

Pi

pelin

es30

0,00

0,00

0 C

DB

Jan-

09

5,0

00,0

00

305,

000,

000

305,

000,

000

30

5,00

0,00

0

Serv

ice

Con

nect

ions

50,0

00,0

00

CD

B Ja

n-09

12

,000

,000

62

,000

,000

62

,000

,000

62,0

00,0

00

Offi

ce F

urni

ture

and

Fix

ture

s70

,000

,000

70

,000

,000

70

,000

,000

70,0

00,0

00

Offi

ce E

quip

men

t80

,000

,000

80

,000

,000

80

,000

,000

80,0

00,0

00

Vehi

cles

120,

000,

000

CD

B Ja

n-09

90

,000

,000

21

0,00

0,00

0 21

0,00

0,00

0

210,

000,

000

Accu

mul

ated

Dep

reci

atio

n (4

9,29

1,66

7)

A

dj #

4 8

,827

,500

(5

8,11

9,16

7) (5

8,11

9,16

7)

(58,

119,

167)

Con

struc

tion

Wor

k in

Pro

gres

s 3

,000

,000

3

,000

,000

3

,000

,000

3,0

00,0

00

Cur

rent

Lia

bilit

ies

Acco

unts

Paya

ble

500,

000

Adj

#2

300,

000

800,

000

80

0,00

0 80

0,00

0

Accr

ued

Expe

nses

400,

000

Adj

#3

400,

000

800,

000

80

0,00

0 80

0,00

0

Inte

rest

Paya

ble

-

-

-

-

Oth

er C

urre

nt L

iabi

litie

s20

0,00

0

20

0,00

0

200,

000

200,

000

Long

-Ter

m L

iabi

litie

s

-

- -

73www.wsp.org


Acco

unt T

itle

Bal

ance

12-3

1-08

Add

ition

s D

educ

tions

A

djus

ted

Bala

nce

1-31

-09

Che

ckin

g C

olum

ns

Bal

ance

She

et

Inco

me

Stat

emen

t R

efer

ence

A

mou

nt

Ref

eren

ce

Am

ount

A

sset

s &

Expe

nses

Lia

bilit

ies,

Equi

ty,

Reve

nues

Lo

ans P

ayab

le10

,000

,000

C

DB

Jan-

09

80,0

00,0

00

CD

B Ja

n-09

5

,000

,000

85

,000

,000

85,0

00,0

00

85,0

00,0

00

-

Equi

ty

-

- -

Stoc

khol

ders’

Equ

ity1,

000,

000,

000

1,00

0,00

0,00

0

1,00

0,00

0,00

0 1,

000,

000,

000

Reta

ined

Ear

ning

s32

8,90

8,33

3

32

8,90

8,33

3

328,

908,

333

328,

908,

333

INC

OM

E ST

ATEM

ENT

AC

CO

UN

TS

Rev

enue

s

Wat

er R

even

ues

B

FC Ja

n-09

11

,909

,500

11

,909

,500

11,9

09,5

00

11

,909

,500

Met

er R

enta

l Fee

B

FC Ja

n-09

4

7,50

0

4

7,50

0

47,

500

4

7,50

0

Adm

inist

ratio

n Fe

e

BFC

Jan-

09

20,

500

20,

500

2

0,50

0

20,

500

New

Con

nect

ion

Fees

C

RB

Jan-

09

1,0

00,0

00

1,0

00,0

00

1

,000

,000

1,0

00,0

00

Pena

lties

B

FC Ja

n-09

1

8,65

1

1

8,65

1

18,

651

1

8,65

1

Oth

er O

pera

ting

Reve

nues

-

-

Expe

nses

Sala

ries

C

DB

Jan-

09

2,6

00,0

00

2,6

00,0

00

2,6

00,0

00

2,6

00,0

00

R e

n t

A

dj #

1 2

,000

,000

2

,000

,000

2

,000

,000

2

,000

,000

Elec

tric

ity

Adj

#3

400,

000

400,

000

400,

000

400,

000

Fuel

C

DB

Jan-

09

500,

000

500,

000

500,

000

500,

000

Che

mic

als a

nd F

ilter

C

DB

Jan-

09

150,

000

150,

000

150,

000

150,

000

Repa

irs a

nd M

aint

enan

ce

CD

B Ja

n-09

50

0,00

0

80

0,00

0 80

0,00

0

80

0,00

0

Adj

#2

300,

000

Gen

eral

Adm

inist

rativ

e Ex

pens

es

CD

B Ja

n-09

1

0,00

0

1

0,00

0 1

0,00

0

1

0,00

0

Don

atio

ns

CD

B Ja

n-09

50

0,00

0

50

0,00

0 50

0,00

0

50

0,00

0

Dep

reci

atio

n Ex

pens

e

Adj

#4

8,8

27,5

00

8,8

27,5

00

8,8

27,5

00

8,8

27,5

00

Inte

rest

Expe

nse

C

DB

Jan-

09

500,

000

500,

000

500,

000

500,

000

Net

Inco

me

-

(3

,291

,349

)

(3

,291

,349

) (3

,291

,349

)

Che

ck fo

r Cor

rect

ness

of P

ostin

g -

52

,148

,651

55,4

40,0

00

(0)

1,42

8,70

4,48

4 1,

428,

704,

484

(0)

LEG

END

:Ad

j A

djus

ting

Entr

yBF

C

Bills

for C

olle

ctio

n Re

port

CD

B C

ash

Disb

urse

men

ts Bo

ok

CR

B C

ash

Rece

ipts

Book



Exhibit 12. Adjustments Guide


ADJUSTMENTS GUIDEFor the Month Ended January 31, 2009

1 Prepaid Expenses

Prepaid Expenses are expenses that have been paid in advance and which benefi t periods after the date of payment.At the time of payment, the expense can either be charged to:

Account used at time of payment Adjustment neededPrepaid Expense Move unused portion to Rent ExpenseRent Expense Move unused portion to Prepaid Rent

Illustration:On July 31, 2008 the BPSAB paid Rp 24,000,000 for the rent of the offi ce space. Th is payment is good for one year ending July 31, 2009.

If the BPSAB has this kind of payment, these details will guide the adjustment to be made:

Account Used Prepaid Rent (Example)Date Paid 7/31/2008Reference PV 08-07-14Description Offi ce rental, 1 Aug-08 to 31-Jul-09Original Amount Paid, Rp 24,000,000 Period covered by the payment 12 monthsExpense per month 2,000,000 Prepaid Expense Balance, last month 14,000,000 Rent Expense, this month 2,000,000 Prepaid Expense Balance, this month 12,000,000 Adjustment: Adj#1Rent Expense account 2,000,000 Prepaid Expense account (2,000,000)Explanation To record rent expense for the month paid last year

2 Accounts Payable

Accounts Payable is the account used for expenses that have been incurred based on the supplier’s invoice or a statement of account. Since these expenses have not yet been recorded in the Cash Disbursements Book, an adjusting entry has to be prepared for them.

Illustration:A contract with CV Jaya was made to repair 10 water meters of the water utility. CV Jaya has an invoice for the repair, but payment is due after completing all the repairs. At the end of the month, 6 water meters have been repaired.

75www.wsp.org


Th e adjustment is only for the completed works that have a benefi t to the utility already. Th e uncompleted works have no benefi t yet at the end of the reporting period, and will be recorded next reporting period when the works have been done.

Account Title Repairs and Maintenance (Example)

When payment is due 2/15/2009Amount per invoice or supporting document 500,000 Total units or days covered by the invoice or supporting document 10 Units applicable for the period of the fi nancial report 6 Expense this month 300,000 Adjustment: Adj #2Repairs and Maintenance Expense 300,000 Accounts Payable 300,000 Explanation To record repair of 6 water meters as of the end of the month

3 Accrued Expenses

Accrued expenses are routine expenses that have already been incurred, but not yet paid and recorded in the fi nancial statements period, because there is no invoice or statement that has been received yet. Accounts Payable on the other hand are for expenses that have been incurred which is attested to by the supplier›s invoice or a statement of account.

Illustration:Th e electricity bill for January 11 to February 10, 2009 amounting to Rp 600,000 was paid only on February 15, 2009. Electricity expense for January 2009 is not yet recorded.

On January 31, 2009, the adjusting entry below should be made.

Account Used Electricity Expense (Example)Date of payment after cut-off date 2/15/2009Amount paid 600,000

Applicable period of payment:From 1/11/2009To 2/10/2009Total applicable days paid 30

Days for this month (January) 20Electricity Expense, this month 400,000 Adjustment: Adj#3Electricity Expense 400,000 Accrued Expense (Current Liabilities) (400,000)Explanation To record electricity expense for January 2009

On February 15, 2009 when the electricity bill was paid, the entry that should be made should record the Electricity Expense for February amounting to Rp 200,000, and to reverse the accrual for January of Rp 400,000 and to record the cash payment of Rp 600,000. With this entry, the Accrued Expenses account for electricity has no more balance, the accruals have all been transferred to the Electricity Expense account. Electricity Expense 200,000 Accrued Expenses (Electricity) 400,000

Cash on Hand 600,000



4 Loan and Interest Payments

If you have loans, fi ll up this portion.

Loan from: PT Yamaha Indonesia BRILoan used for: Purchase of motorcycle Network improvementsPrincipal 80,000,000 Number of payments 20 Frequency of payment monthly Monthly amortization 4,000,000 Interest rate p.a. 12% Obtain this from the loan’s amortization table. If the creditor did not give you an amortization table, you may use the format below.

Interest expense due this month 800,000 Adjustment

Interest expense 800,000 Interest payable 800,000 Explanation To take up interest expense for the

month not yet paid

PT Yamaha Indonesia

Amortization Table

Date Due Amortization Principal, End

Interest Expense

Principal + Interest Due

a b c d e = b + d

1/29/2009 80,000,000 2/28/2009 4,000,000 76,000,000 800,000 4,800,000 3/28/2009 4,000,000 72,000,000 760,000 4,760,000 4/28/2009 4,000,000 68,000,000 720,000 4,720,000 5/28/2009 4,000,000 64,000,000 680,000 4,680,000 6/28/2009 4,000,000 60,000,000 640,000 4,640,000 7/28/2009 4,000,000 56,000,000 600,000 4,600,000 8/28/2009 4,000,000 52,000,000 560,000 4,560,000 9/28/2009 4,000,000 48,000,000 520,000 4,520,000

10/28/2009 4,000,000 44,000,000 480,000 4,480,000 11/28/2009 4,000,000 40,000,000 440,000 4,440,000 12/28/2009 4,000,000 36,000,000 400,000 4,400,000

1/28/2010 4,000,000 32,000,000 360,000 4,360,000 2/28/2010 4,000,000 28,000,000 320,000 4,320,000 3/28/2010 4,000,000 24,000,000 280,000 4,280,000 4/28/2010 4,000,000 20,000,000 240,000 4,240,000 5/28/2010 4,000,000 16,000,000 200,000 4,200,000 6/28/2010 4,000,000 12,000,000 160,000 4,160,000 7/28/2010 4,000,000 8,000,000 120,000 4,120,000 8/28/2010 4,000,000 4,000,000 80,000 4,080,000 9/28/2010 4,000,000 - 40,000 4,040,000

80,000,000 8,400,000 88,400,000

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5 Depreciation

Th e cost of fi xed assets - whether donated, constructed or purchased - have to be distributed over their useful life. Th is is what we call depreciation. For simplicity of application, we will calculate depreciation as follows:

Depreciation for the year = acquisition cost estimated useful life

Th e following data will be needed:

Data Description

a. Asset type Th e asset types common to water utilities are listed in the List of Fixed Assets and Depreciation below.

b. Date acquired Th is date is used in determining if the asset is subject to depreciation for the current period or if it is already fully depreciated.

c. Acquisition cost Th is is the sum of all costs incurred in putting the asset to use.d. Additions this month Th is column is for the acquisition cost of assets acquired during the period. A line may be

inserted to group the newly acquired asset with the same asset type.e. Total acquisition cost Th is is the sum of the acquisition cost column and the additions this month column (columns c

and d).f. Useful life (in years) Th ere are standards to the useful lives of assets. We can use those recommended by Kantor Pajak

and what is being used by Pedoman Akuntansi PDAM.g. Depreciation per year Th e annual depreciation is calculated by dividing the total acquisition cost by the useful life of the

asset.h. Depreciation per month Th is is calculated by dividing depreciation per year by 12 months.

Th is is the depreciation expense that is one of the monthly adjustments to the fi nancial statements.

Depreciation can be calculated from the table below.

Adjustment Adj #4 Depreciation expense 8,827,500 Allowance for depreciation 8,827,500 Explanation To take up depreciation for the month



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79www.wsp.org


Exhibit 13. Income Statement

Badan Pengelola Sarana Air Bersih Tirta Manggala Cianjur, Kabupaten Jawa Barat

Income StatementFor the Month Ended January 31, 2009

Operating Revenues Water Revenues 24,184,000 Meter Rental Fee 47,500 Administration Fee 20,500 New Connection Fees 1,000,000 Penalties 18,591 Other Operating Revenues -

Total Operating Revenues 25,270,591

Operating Expenses Salaries 2,600,000 R e n t 2,000,000 Electricity 400,000 Fuel 500,000 Chemicals and Filter 150,000 Repairs and Maintenance 500,000 General Administrative Expenses 10,000 Other Expenses 500,000

Total Operating Expenses 6,660,000

Net Operating Income 18,610,591

Less: Depreciation Expense 8,827,500

Net Income before Interest 9,783,091

Less: Interest Expense 500,000

Net Income for the Period 9,283,091



Exhibit 14. Balance Sheet


Balance SheetJanuary 31, 2009

A S S E T S

Current Assets

Cash on Hand 165,000 Cash in Bank 2,500,000 Accounts Receivable 2,795,591 Advances to Employees 3,150,000

1,000,000 Merchandise Inventory 1,200,000 Prepaid Expenses 12,000,000 Other Current Assets 5,000,000

Total Current Assets 27,810,591

Fixed Assets

Land 50,000,000 Building 500,000,000 Deepwells and Pump Houses 150,000,000 Pumping Equipment 5,000,000 Reservoir 20,000,000 Pipelines 305,000,000 Service Connections 62,000,000

70,000,000 80,000,000

Vehicles 210,000,000 Total Fixed Assets, at Cost 1,452,000,000 Less: Accumulated Depreciation (58,119,167)

Total Fixed Assets, Net 1,393,880,833

Construction Work in Progress 3,000,000

TOTAL ASSETS 1,424,691,424

81www.wsp.org


LIABILITIES AND CAPITAL

Current Liabilities

Accounts Payable 500,000 Accrued Expenses 800,000 Interest Payable - Other Current Liabilities 200,000

Total Current Liabilities 1,500,000

Long-Term Liabilities

Loans Payable 85,000,000

TOTAL LIABILITIES 86,500,000

CAPITAL

Stockholders' Equity 1,000,000,000 Retained Earnings 328,908,333 Net Income for the Period 9,283,091

Total Capital 1,338,191,424

1,424,691,424 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

Chapter References:Th e material and system discussed in this chapter was developed by Leila Elvas (Senior Water and Sanitation Specialist) for the Multi-Village Pooling Project.

Water and Sanitation Program – World Bank. Multi-Village Pooling Project: Financial Reporting System for Community-Based Water Organization (2009).

Additional Resources: Financial Reporting System for Community-Based Water Supply Organizations with blank forms


8.

Chapter 8

Assists CBOs with defi ning the scope of a new project

Introducing some tools for developing the budget

Assisting CBOs decide whether the project investment is fi nancially sound

Understanding the implications of the investment to the current level of tariff s

Provides concepts in relation to supervising the Program of Works

Available Tools: Program of Works Bill of Quantities Financial Projections, including:o Tariff Modelo Calculations for Financial

Internal Rate of Return

New Investment Project for Community Water Supply

In many cases, the fi rst time ever that CBOs were formed were through government projects where the investment for the water supply infrastructure was mostly granted. In the course of their operations, CBOs are able to generate surplus income after operational expenses, which they could use to make new investments. Th ey may consider applying for a loan from a bank through programs for small enterprises.

Th e stages for planning and executing investment projects are:

Technical Planning PhaseoExpansion planningoBudget development

Financial Planning PhaseoProjecting tariff soAssessing the fi nancial internal rate of return

Implementation PhaseoContracts and biddingoProgress supervisionoCommissioning

8.1. Technical Planning Phase

a. Expansion Planning

Unlike large water supply systems such as those operated by the local water utility, CBOs system expansion depends mostly on the capacity of the operator to manage the system, availability of demand and capital to expand the system (assuming the source of water is not a constraint).

Not diff erent from the initial project construction, expansion planning should begin with the calculation of how many more customers need to be served to check against the present idle capacity in the system, and to decide whether capacity needs to be increased. For accurate measurement of volume of demand, the average current consumption per connection can be used as a basis to calculate the total additional capacity needed for the expansion.

Having calculated the additional volume of water to be produced, an assessment of each system component needs to be done to see whether the current infrastructure (pump and reservoir capacity, diameter of transmission pipe, etc) are still able to deliver the water at this additional fl ow rate or some components need to be upgraded. Th is assessment will indicate what new infrastructure components need to be constructed or upgraded and becomes the basis of the investment design.

83www.wsp.org


b. Budget Estimation

Detailed budget calculation is conducted when the detail engineering design is ready. It is developed by measuring the volumes of each work component and identifying the prices of materials, labor and rent of equipment (for heavy duty activities that cannot be done manually). Th e way to structure cost estimation is by developing work packages starting from preparation work to fi nishing work. Th e work packages are generally divided into:

Preparation Work: land clearing, digging and backfi lling, fencing, mobilization and demobilization

Civil Works: Works on the foundation, slope, column, walls and roof

Piping Works: Digging land for pipe laying, pipe network connection, pipe crossing, and installation of pipe accessories

Mechanical and Electrical Works: Setting up the pump and electricity panel

Finishing Work: Painting, fencing, planting, etc.

To determine their unit prices, the components of each work are estimated using a formula unique to each volume of item component. Th is technique is called ‘unit price analysis’ – planners only need to calculate the overall budget cost by measuring the volume of item components in the building. Th e planners then factor how changes in the prices of labor and materials will infl uence the overall budget cost.

Depending on how simple the characteristics of an item component, they will consist of one or several cost input factors, such as: labor prices, materials prices, and price of equipment rental. Th e simplest item component, such digging a hole, will normally consist only labor price per m3 of soil removed and it will not need several skills level of labor. So, the price of the item component ‘digging’ increases with labor price (linear). Th e unit price of other item components may combine input factors of

several kinds of materials, diff erent levels of labor skills, and some may even need equipment rental. For example, the item component ‘Concrete 1:2:3’ the ‘unit price analysis’ is divided into three mains parts: concrete mix, iron work, and concrete molds. Each main part will have diff erent proportion of labor skills needed (mason, senior mason, worker, and foreman) and diff erent kinds of material (stone, sand, cement, iron, etc). Th is unit analysis provides fi xed numbers of the skills and materials needed to develop one unit item of component. From the table below, each m3 of concrete works is IDR 1,862,360. However, the table also shows how costs infl uence each of the main parts of the work and therefore, infl uences the unit price of concrete works.

Th e same process can be applied for other item components:

1. Concrete components: Calculated by measuring the volume (in m3) multiplied by its price per m3.

2. Floor, wall, and ceiling components: Calculated by measuring their area (in m2) multiplied by their unit price per m2.

3. Piping components: Calculated by counting the length of the pipe for each diameter and their accessories (connectors) plus labor price per meter length.

4. Item materials that are diffi cult to measure can be considered as lump sums based on market price. Th ese types of works include drilling a deep well, moving heavy equipment from one place to another, etc.

Table 26: Example of Developing Unit Prices for Construction Components

Work Component Unit Labor per unit price

Material per unit price Labor price Material price

A. Concrete Mix Rp. 432,850.00

0.6 Mason prs 26,000.00 15,600.00

0.06 Senior Mason prs 27,000.00 1,620.00

0.3 Worker prs 25,000.00 7,500.00

0.021 Foreman prs 30,000.00 630.00

0.94 Stone m3 100,000.00 94,000.00

0.68 Sand m3 75,000.00 51,000.00

8.75 Portland Cement bag 30,000.00 262,500.00

B. Iron Rp. 1,297,600.00

3.86 Mason prs 26,000.00 100,360.00

1.42 Senior Mason prs 27,000.00 38,340.00

3.86 Worker prs 25,000.00 96,500.00

1.25 Labors prs 235,200.00 294,000.00

125 Iron kg 6,000.00 750,000.00

2.3 Wire kg 8,000.00 18,400.00

C. 1M2 Concrete Mold Rp. 131,910.00

0.3 Mason prs 26,000.00 7,800.00

0.03 Senior Mason prs 27,000.00 810.00

0.2 Worker prs 25,000.00 5,000.00

0.01 Foreman prs 30,000.00 300.00

1.2 Wood (2x20x400) lbr 67,500.00 81,000.00

2 Wood (5x7x400) btg 17,500.00 35,000.00

0.25 Nail kg 8,000.00 2,000.00



Where the work is simple, it may be more effi cient and accurate to calculate prices in detail for each item component.

8.2. Financial Planning Phase

At this stage, the CBO has already developed an estimated cost of the investment. It also will have identifi ed a way to fi nance the project, which will often include borrowing the money. It needs to decide whether the investment makes sense – should it go ahead? During the fi nancial planning stage, the CBO will have the following questions and some tools are discussed that will help it answer those questions:

Table 27: Financial Decision Making

Decision Questions Tools to Aid Decision Making

1. What is the resulting cost of the investment to the customers?

Tariff projections

2. Are the future revenues of the investment greater than the investment cost today?

Or, if a loan will be used to make the initial investment, is the investment likely able to service the debt?

Financial internal rate of return

3. With this investment, what will be the eff ect on the CBO’s fi nancial position?

Financial projections: Income Statement, Balance Sheet and Cash Flow Statement

Th e fl ow of analysis for the above questions is depicted in this chart:

Figure 20: From Planning to Implementation

DetailedProject

Investment

Technical Planning PhaseFinancial Planning Phase

Implem

e-ntation

ProjectSummary

AssumptionsWater SupplyProduction

& SalesLoan

Schedule

ExpensesProjections

Opening (Historical

Income Statement)

Implemen-tation

Cash FlowStatement

Internal Rateof Return

IncrementalRevenue and

ExpenseProjection

IncomeStatementProjection

BalanceSheet

Projection

1

2

3

4

85www.wsp.org


a. Tariff Setting and Projections

Tariff s for water use are the main source of revenue of CBOs. In a number of cases, community members agree on an amount that they would like to pay. However, often, this amount may not have any basis, or could be based on the charge applied by a nearby service provider, such as a local water utility (PDAM). Either way of setting tariff s is not suggested. In the fi rst case, communities are likely to agree on a rate that does not realistically cover the cost of operating the service. In the second case, setting the tariff based on some other providers’ rate ignores the diff erences in the scale of operations, infrastructure and effi ciency levels between the two providers.

Th e starting point for tariff discussions and projections should be the ability of the CBO to recover its cost of providing service to the community so that the service will continue into the future. Th e following costs needs to be taken into account by the tariff :

Include the following costs:

Operating expenses (cost of producing and distributing water and administering the business)

Replacement of assets through depreciation

Interest expense of loan

Add some mark-up/allowance for price fl uctuations and other contingencies

Th e above components do not include the payment of the loan principal used to fi nance capital investments. Th e reason is that such amount would have been recovered through the depreciation of assets that were purchased with the loan. However, Government Regulation allows the principal to also be recovered on top of depreciation expenses. CBO Governing Boards can decide whether the inclusion of this amount will still make the tariff aff ordable to its customers.

Additonal Information on Step 2 Projecting the Total Volume of Water Sold: Note that this seeks to estimate volume ‘sold’ rather than produced. In estimating the ‘average consumption per connection’ the best estimate will come from any historical records that the CBO has kept, such as the monthly billings.

Additional Information on Step 3 Projecting the Total Target Water Sales: With this toolkit is a Microsoft Excel-based model for projecting the tariff . For this part of the model, the following are needed:

1. Past fi nancial reporta. Income statement – to get the past

operating expensesb. Balance sheet – to get the net value of

assets (the remainder of the value that remains un-depreciated) to develop the depreciation assumption for future years

Table 28: Process for Calculating Tariffs

Steps Arrival/Calculation

Step 1: Defi ne the term (years of eff ectiveness) of the tariff

Th is could be defi ned in the license of the CBO, agreed by the members or decided by the CBO Governing Board.

A 5-year period, consistent with the investment planning, could be used. Regular updates/review of the tariff may be undertaken from year to year.

Step 2: Project the Total Volume of Water Sold during the term

Th is is estimated based on the number of present and expected new connections for the planning period and average consumption per connection.

Step 3: Project the Total Target Water Sales (IDR) for the period

(See additional discussion below)

Total operating expenses + Total depreciation + interest expense + profi ts = Total Target Water Sales

Step 4: Distribute the Total Target Water Sales (Step 3) by the Projected Total Volume of Water Sold (Step 2)

Total target water sales ÷Total projected volume water sold = Target Tariff /m3

Step 5: Test for aff ordability and compare against willingness to pay

(See additional discussion below)

Diff erent approaches could be used, including: Consulting the community about the

proposed tariff Checking whether the average monthly

household bill < 5% of monthly household income

2. Assumptionsa. Infl ation – to adjust prices and

incomes in future yearsb. Expense assumptions – to get the

total operating expenses needed to be covered by the tariff No. of personnel and average

monthly salary Raw water supply cost Cost of electricity + chemical per

m3 of water produced Repairs and maintenance as % of

fi xed assets General & administrative expenses

as % of personnelc. Depreciation rate – to defi ne the

period of time funds accumulate to replace assets. Th e following rates of depreciation are used for the diff erent life cycle period of the assets: 10 years – 10%; 20 years – 5%; 25 years – 4%

3. Loan and interest payment schedule



Additional Information on Step 5 Testing for Aff ordability and Comparing with Willingness to Pay: In 2009, MVP conducted a willingness-to-pay survey in 5 districts. Th e table shows the higher and lower boundary of the willingness-to-pay results of the survey and compares this with the current average tariff charged by selected CBOs. Th e upper and lower boundary is where 95% of the respondents’ willingness-to-pay will fall:

Table 29: Willingness to Pay

District Willingness to Pay (IDR/m3)

Current Average Tariff

(IDR/m3)Lower Bound

Upper Bound

Bandung 2,038 2,177 2,107Blitar 1,670 1,803 1,737Cianjur 2,519 2,645 2,582Malang 2,180 2,349 2,264Lamongan 2,338 2,453 2,395

If the projected tariff s are higher than what customers can aff ord, the CBO has the option to: Reduce its mark-up Reduce the rate of depreciation of assets Review whether any operational savings

can be made Decide whether the investment strategy

needs to be changed – for example, phasing the project; or, instead of expanding the system into new areas, the CBO may decide to prioritize in-fi ll (increasing connections within the service area)

Box 6: What Is 1 m3?

In the MVP experience, most households served by CBOs consume between 10 to 15 m3 of water in a month. If the calculated tariff is IDR 2,000/m3, this means that a household will be paying between IDR 20,000 – 30,000 per month. In discussing whether this water tariff is aff ordable to the members of the community, one constraint is that people may not have a reference point for making a decision. For example, people may not be able to visualize how much is 1 m3 of water?

Community facilitators and CBO staff might fi nd this visual helpful. It shows a domestic storage unit with the size of 1m3 and compares this with the volume and price of bottled water. Th e picture also shows that a pack of cigarettes costs more than three times a cubic meter of water from the CBO. So for 3-4 packs of cigarettes each month, a family could easily pay for the monthly household water bill of IDR 20,000-30,000. Suddenly, the tariff s seem much more aff ordable considering the importance of water for the whole family to survive and enjoy their lives.

Rp. 2.000/1.000 lt orRp. 2.000/m3

Rp. 1.500/1.5 lt orRp. 1,000,000/m3

Rp. 1.000/0.6 lt orRp. 1,666,666/m3

Rp. 500/200 ml orRp. 2,500,000/m3

Rp. 7,500/12 pieces

Photo presentation courtesy of Alfred Lambertus

87www.wsp.org


b. Assessing the Financial Internal Rate of Return of the New Investment

Th e Financial Internal Rate of Return (FIRR) is used to assess the profi tability of an investment by:

Comparing the FIRR of a project against the FIRR of other investment options

Comparing the FIRR with the ‘cost of capital.’ For CBOs, the most relevant ‘cost of capital’ is the interest rate charged on a loan to fi nance the investment. Th is loan can come from a bank or a private party.

FIRR applies the concept of ‘time value for money,’ which equates the value of money in the present day to be more than the same value at a future time because of its capacity to increase in value over the period. So, IDR 1 today is worth more than IDR 1 next year. Given a period of time (n) and rate of growth (i), one is able to calculate the ‘future value’ of money today. For example, if a person had IDR 100 today (2009) and placed it in a time deposit with a bank at an interest rate of 10% per annum, then a year from today, in 2010, that person would have IDR 110.

FV = PV (1 + i) n

IDR 110 = 100 (1+.10)1

FV = future valuePV = present value (amount of money today)i = interest raten = number of periods (for example, 1 year)

IDR 100 today= IDR 110 in 2010Present value (PV) Future value (FV)

2009 201010% annual interest (I), 1 (n) year

IDR 100 IDR 110

PV - present valuei - interest rate

FV - future valuen - no. of periods (years)

PV =

IDR 110 (in 2010) is the ‘future value’ of IDR 100 (in 2009), which is the ‘present

value’. Under the concept of ‘time value for money,’ these two amounts – the present and future values – are equal.

But, unlike a time-deposit in a bank where the interest rate is known in advance at the beginning, in operating a business, such as a water supply system, the interest rate (the rate at which money invested grows) is not known. What are known are:

Present value of the investment Future value of revenues generated

from the investment (net operating income in future years)

FV = PV (1 + i) n

So, what you are looking for is the interest rate. FIRR is the interest (or discount) rate that results in the net present value of future cash fl ows to be equivalent to zero (0), i.e. the rate at which there is equality between

the present value of investment costs and future incomes from the investment.

For example, a CBO invests IDR 100 million in 2009 in expansion of the system.

Present value of investment : IDR 100,000,000Future cash fl ows : Revenues – Expenses = Net Operating Incomes

Because the future cash fl ows are uneven, the calculation for FIRR requires some iteration that is not easy to do manually. FIRR calculations can be done easily through Microsoft Excel, using the formula called ‘IRR.’

Given the FIRR, which in the example is 6%, CBOs can make decisions in relation to alternative investment options and to cost of capital:

Table 30: Example of Calculation of Financial Internal Rate of Return

2009 2010 2011Investment -100,000,000Operating Revenue 70,000,000 85,000,000Operating Expenses -20,000,000 -25,000,000Net Operating Income 50,000,000 60,000,000Cash Flow -100,000,000 50,000,000 60,000,000FIRR 6%



If the CBO is choosing between: a. making the investment in expansion with a 6% FIRR or b. placing the money in a time deposit account with an interest of 3% per year, CBO could opt for the investment expansion because it would provide it with a much higher rate of return 6% versus 3%.

If a bank will lend the IDR 100 million for investment to the CBO and charge

an interest of 13% per year, then the CBO should decide not to fi nance the investment through a loan because the project’s FIRR of 6% is much smaller than the cost of capital of 13%.

When calculating for FIRR, remember to project future cash fl ows for the entire useful life of the investment project/asset (for example, 10 years into the future). Although the FIRR can be calculated for the

whole business of the CBO, i.e. including its current operations, the Financial Projections model that accompanies this toolkit only focuses on the new or additional project. In order to calculate for the net operating income, the model only takes into account incremental costs and revenues resulting from the new project. Th e model uses the loan interest rate as the ‘hurdle’ rate for cost of capital, not the average cost of fi nance from diff erent other sources.

Box 7: When the Cost of Operations and Maintenance is Beyond Community Affordability

Name : Tirta Sawargi Water Supply and Sanitation Management Board Panenjoan Village, Cicalengka Subdistrict, Bandung DistrictEstablished : 1999 No. of customers : + 250 household connections (current)

Panenjoan village received support from the provincial government to develop a pipe network, but only a few people benefi ted and the quality of the water was poor. So the village administration and community leaders decided to try working in partnership with an NGO that was involved in water supply (on the recommendation of Mr. Wedana) to improve the system. A committee was formed to take responsibility for the development. Th e community fi nanced the development of the water supply system itself, with start-up capital initially provided by the NGO and the actual construction being done by the community under the coordination of the committee and with the support of the NGO. Once the water supply system was delivering water to people in their homes, they gradually repaid the NGO the capital invested. As well as paying the development cost in installments (IDR 500,000/household over + 40 months), customers also pay water usage fees, which are managed by the committee. In the management phase, the committee became a water supply management board.

Th e system has been running for +10 years, and during that time the biggest problems were rising electricity costs, fl uctuating electrical voltage, frequent damage to the submersible pumps, and theft of electric cable. As a result, routine operating costs and repair costs soared, and the management board ran out of funds. When donations from the community proved insuffi cient to pay for repairs, the management board sought loans from various sources, including the bank, using securities belonging to the board members as collateral. Our dream is to replace the pump system with a gravitation system that uses treated river (irrigation) water or water from a spring in another village that is at a higher elevation. Adam HS, Chair, Tirta Sawargi Water Supply and Sanitation Management Board

8.3. Implementation Phase

In projects, the implementation phase refers to the construction of the facility. Th e following stages are part of this phase:

Contracts and biddingProgress supervisionCommissioning

a. Contracts and Bidding

Th e work can be done either by contractors or by the owners themselves. Assuming the

work will be implemented by contractors there are several documents that need to be readied for the bidding process. Th ey include:

Technical Drawings, refers to detail engineering design of each system component (including plan, ironing drawing, concrete drawing, etc)

Technical Specifi cations, refers to the detailing of requirement for each system component such as amount and type of materials to be used in

construction and the way to construct them

BoQ (Bill of Quantity), refers to the detailed budget cost that is calculated based on unit price per item component multiplied by the required volumes (See Section 8.1)

Th e fi rst two documents are useful for bidders to understand the details of the construction needed by the CBO from them. Th e last document (BoQ) is the CBO’s own estimate of the overall project

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cost. Th is document is a guidance for the owner to see how diff erent the costs are from those proposed by the bidders. If the bid proposal is far too high compared to the BoQ, it may be that the contractor is ineffi cient, while if it is far too low, the technical specifi cation proposed by the contractor needs to be revisited.

b. Progress Supervision

Th e three keywords in supervising the progress of implementation (construction) are: quality, time, and budget. Th e Technical Drawing is a tool that can be used to assess the consistency of the construction against the design. Th ere is no question that the contractor has to follow the technical drawing fully. Any minor change on the design during construction has to be redone, or if the CBO agrees to the modifi cations, then the technical drawing has to be revised and signed by the CBO, prior the modifi cation. Th e Technical Specifi cation is also a tool used to monitor the construction quality, especially its consistency with the agreed materials as mentioned in the document. Technical Specifi cation can mention several options on the materials for item components as long as those materials are in the same class, for example: types of ceramics, woods, etc. Th ese options are useful whenever certain materials are not available in the market.

In relation to time and budget supervision methods, the ‘S-Curve’ can be applied to observe how the budget disbursement to the project is in line with the progress of physical works. Th e steps in developing the S-Curve are:

Develop a table similar to the one in the example below, with the tasks on the fi rst column and the time period in weeks in the next succeeding columns.

Convert the budget for each ‘task’ as a portion of the total construction by dividing the amount of this component of work by the total construction cost. Th is is called the ‘weight.’ In the example below (Figure X), item 1 on the preparation work (IDR 850,000) is

equal to 0.21% of the total project cost (IDR 407,574,000).

Based on the number of weeks required to undertake each task, distribute the ‘weight’ calculated for each item. Th is is called the ‘distributed weight.’ For example, the total weight of item 1 is 0.21% and the total number of weeks it takes is 2 weeks. So, each week for item 1 has a distributed weight equivalent to 0.105% (in the example, it appears as 0.1% due to rounding).

After identifying the ‘distributed weight’ for each week of each item of work, add the ‘distributed weights’ of all items for each period (at the bottom) for Week 1, Week 2, Week 3 and so on, up to the last week of the project (not shown in the table).

Th en, by adding up (cumulatively) the distributed weights from Week 1 into Week 2 into Week 3 and so on, the cumulative total will equal to 100% at the end of the project period. Th is gives you an idea that by Week 1, 0.18% of the work is planned to be completed; by the end of Week 5, 15.5% of the work is planned to be completed; by Week 8, 29.4% of the work is planned to be completed and so on until the Last Week of the project where 100% of the work will be completed.

If you plotted those cumulative percentages (going from the bottom to the top) across the weeks (going from left to right) with a point after each week, you are able to draw a curved line across the timetable. Th e line usually looks like an ‘S’ – hence, the term ‘S-Curve.’ (See Figure XX below)

Table 31: Construction Supervision Sheet



Table 32: Budget Supervision

c. Commissioning

Commissioning is a process following construction to check and verify whether all the system components are working properly. Normally, the commissioning period is agreed upon (between 3-6 months of operation). If any system component does not work within this period (due to construction fl aws or damages), the responsibility to repair the fl aws lies with the contractor. During the commissioning period, it is important for the CBO to observe whether the fl ow rate and pressure at all points of the system are according to the design.

Chapter References:

Additional Resources: Budget Planning and Bill of QuantitiesFinancial Projections for New Investments by Community-Based Water Supply OrganizationsProgram of Works

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Appendices

Appendix 1: Sample License to Operate

KOP DINAS Nomor: ________________________

TENTANGIZIN PENGELOLAAN SARANA AIR BERSIH BERBASIS MASYARAKAT _______________________{nama daerah}

SEBAGAI KEGIATAN KEMITRAAN PEMERINTAH DAN MASYARAKAT

Menimbang : a. Pengembangan Sistem Penyediaan Air Minum (SPAM) menjadi tanggung jawab Pemerintah dan Pemerintah Daerah untuk menjamin hak setiap orang dalam mendapatkan air minum bagi kebutuhan pokok minimal sehari-hari guna memenuhi kehidupan yang sehat, bersih, dan produktif sesuai dengan peraturan perundang-undangan.

b. Kinerja Badan Pengelola Sistem Penyediaan Air Bersih (BPSAB) ____________________ selama ____ (tahun _____ s.d. sekarang) telah memberikan pelayanan kepada masyarakat pelanggan di daerah__________________________ dengan baik.

c. Dalam rangka peningkatan akses air bersih bagi masyarakat, Pemerintah Daerah mendukung BPSAB ______________________ memperluas pelayanan di desa ______________________ di Kabupaten ______________________

Surat ini dimaksudkan untuk memberikan mandat kepada BPSAB _____________________ untuk menjalankan operasional dan pemeliharaaan sistem sehingga dapat memberikan pelayanan kepada masyarakat pelanggan didaerah __________________________ (nama daerah pelayanan).

Dalam rangka menjamin operasional ,pemeliharaan dan pengembangan sistem, BPSAB mempunyai kewajiban sebagai berikut:1. Memanfaatkan dan mengelola operasional dan pemeliharaan SAB dengan sebaik-baiknya. Kegiatan pemantauan dan evaluasi

akan dilakukan oleh pemerintah dengan indikator-indikator kinerja seperti dalam Lampiran Surat Keputusan ini.2. Melaksanakan administrasi kelembagaan organisasi. 3. Melaksanakan ketaatan terhadap ketentuan yang berlaku, baik teknis maupun keuangan SAB.4. Mempertanggungjawabkan hasil kegiatan kepada pelanggan dan pemerintahan desa.5. Melakukan segala perbuatan hukum untuk dan atas nama organisasi.

Dalam rangka menjamin operasional ,pemeliharaan dan pengembangan sistem, BPSAB mempunyai hak-hak sebagai berikut:1. Memperoleh lahan untuk membangun sarana, sesuai dengan peruntukan.2. Mengkaji secara berkala dan menetapkan tarif pelayanan sesuai dengan keinginan dan kemampuan membayar pelanggan. 3. Menerima pembayaran jasa pelayanan sesuai dengan tarif pelayanan.4. Menetapkan dan mengenakan denda terhadap keterlambatan pembayaran tagihan oleh pelanggan.5. Memperoleh kuantitas air baku secara kontinyu sesuai dengan izin yang didapat.6. Memutus sambungan pelanggan kepada para pemakai atau pemakai yang tidak memenuhi kewajiban7. Menggugat masyarakat atau organisasi lain yg melakukan kegiatan & mengakibatkan kerusakan prasarana dan sarana pelayanan



Dalam rangka menjamin operasional, pemeliharaan dan pengembangan sistem, Pemerintah Daerah akan memfasilitasi hal-hal sebagai berikut:

1. Dinas terkait SAB sebagai penasihat dan pelindung.2. Memberikan jaminan keselamatan dan ketertiban bagi badan pengelola dalam menjalankan kewajibannya.3. Melakukan pembinaan teknis, keuangan dan kelembagaan terhadap SAB dan Badan Pengelolanya. Apabila diperlukan,

pertemuan rutin pembinaan akan dilakukan minimal sekali dalam 6 bulan.4. Menyediakan forum berbagi pengalaman dan pengetahuan antar SAB, minimal sekali setiap tahun.5. Memberikan usulan/advis untuk pengambilan keputusan terkait dengan peraturan; akan tetapi tidak, atas nama BPSAB,

mengambil keputusan yang terkait dengan pengorganisasian. 6. Melakukan pemantauan kinerja SAB berdasarkan indikator-indikator yang ditetapkan, sekali dalam setahun.7. Mempromosikan/membantu penyusunan dan pelaksanaan strategi peningkatan kinerja SAB, baik untuk efi siensi maupun

ekspansi sistem.8. Memfasilitasi dan menindaklanjuti temuan-temuan pemantauan kinerja dan pendanaan program-program pemerintah.

Ijin Operasional ini diberikan selama 3 tahun mulai berlaku sejak tanggal ditetapkan sampai dengan __________________, dengan ketentuan akan diadakan perbaikan seperlunya apabila di kemudian hari terdapat kekeliruan dalam penetapannya. Pemerintah Daerah dapat menghentikan Ijin Operasional ini sewaktu-waktu, baik seluruhnya maupun sebagian dari pekerjaan, apabila BPSAB terbukti tidak dapat memenuhi komitmen dan menjalankan mandat yang ditetapkan. Apabila terjadi masalah diluar dari hal-hal yang diatur dalam surat ini, kedua belah pihak sepakat akan menyelesaikannya terlebih dahulu secara musyawarah mufakat.

Dinas {___________________________} Tanggal

Nama

Tembusan disampaikan kepada:1. Yth. Bapak/Ibu Bupati _________________2. Yth. Camat __________________________3. Yth. Kepala Desa _____________________4. Pengurus BPSAB _____________________

LampiranTabel Pemantauan Indikator Kinerja BPSAB

Aspek Indikator yang DimonitorAspek Kepatuhan terhadap Peraturan 1. Aspek legalitas dan bentuk badan hukum: Akte Notaris dan Pengesahan DepHukHam

2. Perijinan pengambilan air (SIPA)3. Perijinan penggunaan lahan

Kesinambungan bidang Teknik 4. Cakupan pelayanan 5. Kebocoran Air6. Kualitas Air Bersih7. Tekanan air8. Standar Pelayanan

Kesinambungan bidang Keuangan 10. Pemutakhiran laporan keuangan 11. Rasio Operasi12. Efi siensi Penagihan 13. Waktu penagihan

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Appendix 2: Model Articles of Organization: Cooperative

AKTA PENDIRIAN

KOPERASI………………..

Nomor : ………

Pada hari ini, ………………tanggal ……….……… (…………….) Pukul ……………...Waktu Indonesia Bagian……..……………………..Berhadapan dengan saya, ………………, Sarjana Hukum, Notaris, yang berdasarkan Surat Keputusan Menteri Negara Koperasi dan Usaha Kecil Dan Menengah nomor……………tanggal……………….telah ditetapkan sebagai Notaris Pembuat Akta Koperasi di wilayah Kabupaten/Kota …………….dan berkantor di……….., dengan dihadiri oleh saksi yang saya kenal dan akan disebutkan dalam bagian akhir akta ini :----

1. Tuan ……………….........., lahir di……………......, pada tanggal ……...………….. (……………............…) …........………………………………, bertempat tinggal di …………………………..................................……..........RT..................RW................ Kelurahan .................................., Kecamatan...............Kabupaten/Kota.................... pemegang Kartu Tanda Penduduk Nomor .................., Warga Negara Indonesia ---





6.

|

|

|




Yang selanjutnya dalam Akta Pendirian ini disebut Penghadap---------------------------------- Menurut keterangan penghadap, penghadap bertindak : ------------------------------------------

a. Untuk diri sendiri; --------------------------------------------------------------------------------------b. Berdasarkan surat kuasa dibawah tangan, tertanggal ............................... (....................) bermaterai cukup, dan aslinya dilekatkan

pada asli akta ini, oleh karenanya sah bertindak untuk dan atas nama : ----------------------------------------------






6. ..............................................................................................................................dst.

Para penghadap masing-masing beritindak sebagaimana tersebut diatas menerangkan terlebih dahulu : ---------------------------------------------------------------------

bahwa pada hari ............... tanggal ................. jam........................WIB sampai dengan jam ..............WIB, bertempat di ...................... Jalan .........................., telah diadakan rapat pendirian koperasi..................................., berkedudukan dan berkantor di ...................................., sedangkan susunan pengurus dan pengawas dimuat dalam Berita Acara Rapat, dibawah tangan, tertanggal............, bermeterai cukup, dilekatkan pada minuta akta ini. ---------

bahwa dalam rapat tersebut telah hadir ............... orang, yang merupakan pendiri koperasi ---------------------------------------------------------------------------------

Selanjutnya para penghadap bertindak berdasarkan kuasa tersebut menyatakan bahwa Rapat Anggota Pendirian Koperasi telah memutuskan antara lain sebagai berikut : -----------------------------------------------------------------

menyetujui susunan pengurus Koperasi. ------------------------------------------------ menyetujui isi Anggaran Dasar, yang berbunyi sebagai berikut:

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--------------------------------------------------------- BAB I ---------------------------------------------------

------------------------------------NAMA DAN TEMPAT KEDUDUKAN--------------------------------

------------------------------------------------------- Pasal 1 --------------------------------------------------

(1) Koperasi ini bernama Koperasi “.........................................................” disingkat Koperasi ...............................” dan untuk selanjutnya dalam Anggaran Dasar ini disebut Koperasi. -------------------------------------------------------------------------------------

(2) Koperasi ini termasuk jenis koperasi .........................................................................(3) Koperasi ini berkedudukan di ....................................................................................

------------------------------------------------------- BAB II ----------------------------------------------------

----------------------------------- LANDASAN ASAS DAN PRINSIP -----------------------------------

-------------------------------------------------------- Pasal 2 -------------------------------------------------

Koperasi berlandaskan Pancasila dan Undang-Undang Dasar 1945 serta berdasarkan kekeluargaan. --------------------------------------------------------------------------------------------------

-----------------------------------------------------Pasal 3------------------------------------------------------

(1) Koperasi melakukan kegiatannya berdasarkan prinsip-prinsip Koperasi yaitu : ------a. keanggotaan bersifat sukarela dan terbuka; -----------------------------------------------b. pengelolaan dilakukan secara demokratis; ------------------------------------------------c. pembagian sisa hasil usaha (SHU) dilakukan secara adil sebanding dengan besarnya jasa usaha masing-masing anggota: --------

-----------------------------------d. pemberian balas jasa yang terbatas terhadap modal; ----------------------------------e. kemandirian; ---------------------------------------------------------------------------------------f. melaksanakan pendidikan perkoperasian; -------------------------------------------------g. kerjasama antar Koperasi. ---------------------------------------------------------------------

(2) Koperasi sebagai badan usaha dalam melaksanakan kegiatannya yang mengorganisir pemanfaatan dan pendayagunaan sumber daya ekonomi pada anggotannya atas dasar prinsip-prinsip tersebut pada ayat (1) diatas dan kaidah-kaidah usaha ekonomi. ------------------------------------------------------------------------------

------------------------------------------------------ BAB III ----------------------------------------------------

---------------------------------- TUJUAN DAN KEGIATAN USAHA ----------------------------------

------------------------------------------------------ Pasal 4 ---------------------------------------------------

Tujuan didirikan Koperasi adalah untuk : ---------------------------------------------------------------

a. Mengupayakan dan mengelola pengadaan air bersih yang siap digunakan oleh masyarakat setempat dan/atau masyarakat di daerah sekitar tempat Koperasi berada;----------------------------------------------------------------------------------------------------

b. Meningkatkan kesejahteraan dan taraf hidup anggota pada khususnya dan masyarakat pada umumnya; -----------------------------------------------------------------------

c. Menjadi gerakan ekonomi rakyat serta ikut membangun tatanan perekonomian nasional. -------------------------------------------------------------------------------------------------



------------------------------------------------------ Pasal 5 ---------------------------------------------------

(1) Untuk mencapai tujuan sebagaimana dimaksud Pasal 4, maka Koperasi menyelenggarakan kegiatan usaha yang berkaitan dengan kegiatan usaha anggota, sebagai berikut : ---------------------------------------------------------------------------a. Mengupayakan dan menyediakan pengadaan air minum bagi anggota Koperasi yang berada di daerah tempat Koperasi berada

dan/atau di daerah sekitarnya;-------------------------------------------------------------------------------------------b. Mengelola dan merawat instalasi penyediaan air minum yang ada dan/atau akan dibangun di daerah tempat Koperasi

berada;--------------------------------------c. Menerima pembayaran dari para angota Koperasi atas penyediaan air minum oleh

Koperasi;--------------------------------------------------------------------------------------d. ……………………………………………………………………………………………e. ..............................................................................................................................

(2) Koperasi dapat membuka cabang atau perwakilan di tempat lain, baik di dalam maupun di luar wilayah Republik Indonesia, pembukaan cabang atau perwakilan harus mendapat persetujuan Rapat Anggota, dan peraturan perundang-undangan yang berlaku. -------------------------------------------------------------------------------------------

(3) Dalam melaksanakan kegiatan usaha sebagaimana dimaksud dalam ayat (1), Koperasi dapat melakukan kerjasama dengan koperasi dan/atau Badan Usaha lainnya, baik di dalam maupun di luar wilayah Republik Indonesia.----------------------

(4) Koperasi harus menyusun rencana kerja jangka panjang dan rencana kerja jangka pendek (tahunan) serta Rencana Anggaran Pendapatan dan Belanja Koperasi dan disahkan oleh Rapat Anggota. ---------------------------------------------------------------------

(5) Kegiatan unit usaha simpan pinjam ditujukan untuk menghimpun dan menyalurkan dana dari dan untuk anggota koperasi, calon anggota koperaasi, koperasi lain dan atau anggotanya. --------------------------------------------------------------------------------------

(6) Pengelolaan unit usaha simpan pinjam dilakukan secara terpisah dari unit usaha lainnya. ---------------------------------------------------------------------------------------------------

(7) Pengelolaan unit usaha simpan pinjam dilakukan oleh tenaga pengelola yang mempunyai keahlian di bidang keuangan, atau pernah mengikuti pendidikan simpan pinjam atau magang dalam usaha simpan pinjam. --------------------------------

------------------------------------------------------- BAB IV ---------------------------------------------------

----------------------------------------------- KEANGGOTAAN --------------------------------------------

------------------------------------------------------ Pasal 6 ---------------------------------------------------

Persyaratan untuk diterima menjadi anggota sebagai berikut: ------------------------------------

a. Warga Negara Indonesia, ---------------------------------------------------------------------------b. mempunyai kemampuan penuh untuk melakukan tindakan hukum, ---------------------c. mempunyai profesi/pekerjaan sebagai ……………....................................................d. bertempat tinggal di …………………………. Kabupaten/Kota …………………….....,e. telah menyatakan kesanggupan tertulis untuk melunasi simpanan pokok dan simpanan wajib sebagaimana dimaksud dalam Pasal

39 ayat (1), -----------------------f. telah menyetujui isi Anggaran Dasar dan ketentuan-ketentuan yang berlaku.---------

------------------------------------------------------ Pasal 7---------------------------------------------------

(1) Keanggotaan koperasi diperoleh jika seluruh persyaratan telah dipenuhi, simpanan pokok dan simpanan wajib telah dilunasi dan yang bersangkutan terdaftar dan telah menandatangani Buku Daftar Anggota Koperasi. -------------------------------------

(2) Pengertian keanggotaan sebagaimana dimaksud ayat (1) di atas termasuk para pendiri. ---------------------------------------------------------------------------------------------------

(3) Keanggotaan tidak dapat dipindah-tangankan kepada siapapun dengan cara apapun. --------------------------------------------------------------------------------------------------

(4) Koperasi secara terbuka dapat menerima anggota lain sebagai anggota luar biasa.

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(5) Anggota luar biasa adalah mereka yang bermaksud menjadi anggota, namun tidak dapat memenuhi semua/seluruh syarat sebagai anggota. ---------------------------------

(6) Tata cara penerimaan anggota sebagaimana dimaksud ayat (4) diatur dalam Anggaran Rumah Tangga. --------------------------------------------------------------------------

------------------------------------------------------ Pasal 8 ---------------------------------------------------

Setiap anggota mempunyai kewajiban : ----------------------------------------------------------------

a. membayar simpanan wajib sesuai ketentuan yang ditetapkan dalam Anggaran Rumah Tangga atau diputuskan dalam Rapat Anggota. ------------------------------------

b. berpartisipasi dalam kegiatan usaha simpan pinjam. ----------------------------------------c. mentaati ketentuan Anggaran Dasar, Anggaran Rumah Tangga, keputusan Rapat Anggota dan ketentuan lanilla yang berlaku dalam

Koperasi. -----------------------------d. memelihara serta menjaga nama baik dan kebersamaan dalam Koperasi.

------------------------------------------------------ Pasal 9 ---------------------------------------------------

Setiap anggota berhak : -------------------------------------------------------------------------------------

a. memperoleh pelayanan dari Koperasi; ----------------------------------------------------------b. menghadiri dan berbicara dalam rapat anggota; ----------------------------------------------c. memiliki hak suara yang sama; --------------------------------------------------------------------d. memilih dan dipilih menjadi Pengurus atau Pengawas --------------------------------------e. mengajukan pendapat, saran dan usul untuk kebaikan dan kemajuan Koperasi;-----f. memperoleh bagian Sisa Hasil Usaha. ----------------------------------------------------------

---------------------------------------------------- Pasal 10 ---------------------------------------------------

(1) Bagi mereka yang telah melunasi pembayaran simpanan pokok, akan tetapi secara formal belum sepenuhnya melengkapi persyaratan administratif, belum menandatangani BUku Daftar Anggota atau belum membayar seluruh simpanan pokok termasuk simpanan wajib dan lain-lain sebagaimana diatur dalam Anggaran Rumah Tangga berstatus sebagai Calon Anggota.-------------------------------------------

(2) Calon Anggota mempunyai kewajiban : ---------------------------------------------------------a. ……………………………………………………………………………………………b. Berpartisipasi dalam kegiatan usaha Koperasi; ------------------------------------------c. Mentaati ketentuan Anggaran Dasar, Anggaran Rumah Tangga, Keputusan Rapat Anggota dan ketentuan lainnya yang berlaku

dalam Koperasi. -------------d. Memelihara dan menjaga nama baik dan kebersamaan dalam Koperasi.---------e. ..............................................................................................................................

(3) Calon Anggota mempunyai Hak: ------------------------------------------------------------------a. memperoleh pelayanan Koperasi; -----------------------------------------------------------b. menghadiri dan berbicara dalam rapat anggota; -----------------------------------------c. mengajukan pendapat, saran dan usul untuk kebaikan dan kemajuan Koperasi.

---------------------------------------------------- Pasal 11 ---------------------------------------------------

(1) Setiap anggota luar biasa memiliki kewajiban: ------------------------------------------------a. membayar simpanan pokok menurut ketentuan dalam Anggaran Dasar dan membayar simpanan wajib sesuai dengan keputusan

Rapat Anggota; ------------



b. ……………………………………………………………………………………………

c. mentaati ketentuan Anggaran Dasar, Anggaran Rumah Tangga, Keputusan Rapat Anggota dan ketentuan lainnya yang berlaku dalam koperasi; --------------

d. memelihara dan menjaga nama baik Koperasi dan kebersamaan dalam Koperasi. --------------------------------------------------------------------------------------------

(2) Setiap Anggota Luar Biasa mempunyi hak: ----------------------------------------------------a. memperoleh pelayanan Koperasi; -----------------------------------------------------------b. menghadiri dan berbicara dalam rapat anggota; -----------------------------------------c. mengajukan pendapat, saran dan usul untuk kebaikan dan kemajuan Koperasi.

---------------------------------------------------- Pasal 12 ---------------------------------------------------

(1) Keanggotaan berakhir bila : ------------------------------------------------------------------------

a. anggota tersebut meninggal dunia; ---------------------------------------------------------

b. Koperasi membubarkan diri atau dibubarkan oleh Pemerintah; ---------------------

c. berhenti atas permintaan sendiri; ------------------------------------------------------------

d. diberhentikan oleh Pengurus karena tidak memenuhi lagi persyaratan keanggotaan dan atau melanggar ketentuan Anggaran Dasar/Anggaran Rumah Tangga dan ketentuan lain yang berlaku dalam Koperasi. -----------------

(2) Anggota yang diberhentikan oleh Pengurus dapat meminta Pertimbangan/Pembelaan kepada Rapat Anggota. ----------------------------------------

(3) Simpanan pokok, simpanan wajib dan bagian Sisa Hasil Usaha anggota yang diberhentikan oleh Pengurus, dikembalikan sesuai dengan ketentuan Anggaran Rumah Tangga atau peraturan khusus. ---------------------------------------------------------

(4) Berakhirnya keanggotaan mulai berlaku sah pada saat penghapusan/pencoretan nama anggota yang bersangkutan dari buku daftar anggota.------------------------------

-------------------------------------------------------- BAB V --------------------------------------------------

------------------------------------------------- RAPAT ANGGOTA ---------------------------------------

---------------------------------------------------- Pasal 13 ---------------------------------------------------

(1) Rapat Anggota merupakan pemegang kekuasaan tertinggi dalam Koperasi.----------

(2) Rapat Anggota dilaksanakan untuk menetapkan : --------------------------------------------

a. Anggaran Dasar, Anggaran Rumah Tangga dan perubahan Anggaran Dasar/Anggaran Rumah Tangga ; -----------------------------------------------------------

b. kebijaksanaan umum di bidang organisasi, manajemen dan usaha Koperasi; ---c. pemilihan, pengangkatan dan pemberhentian Pengurus dan Pengawas, ---------d. rencana kerja, rencana anggara pendapatan dan belanja Koperasi serta pengesahan laporan keuangan; -----------------------------

---------------------------------e. pengesahan pertanggungjawaban Pengurus dalam pelaksanaan tugasnya dan pelaksanaan tugas Pengawas bila Koperasi

mengangkat Pengawas tetap; -----

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f. pembagian Sisa Hasil Usaha; -----------------------------------------------------------------g. penggabungan, peleburan, pembagian dan pembubaran Koperasi. ----------------

(3) Rapat Anggota dilakukan sekurang-kurangnya sekali dalam 1 (satu) tahun. ---------

(4) Rapat Anggota dapat dilakukan secara langsung atau melalui perwakilan yang pengaturannya ditentukan dalam Anggaran Rumah Tangga. -----------------------------

(5) Rapat Anggota Komisi terdiri dari : ---------------------------------------------------------------

a. Rapat Anggota Tahunan;-----------------------------------------------------------------------

b. Rapat Anggota Rencana Kerja dan Rencana Anggaran Pendapatan dan Belanja;----------------------------------------------------------------------------------------------

c. Rapat Anggota Khusus; ------------------------------------------------------------------------

d. Rapat Anggota Luar Biasa. --------------------------------------------------------------------

---------------------------------------------------- Pasal 14 ---------------------------------------------------

(1) Rapat Anggota dinyatakan kuorum jika dihadiri oleh lebih dari ½ (satu per dua) dari jumlah anggota Koperasi dan disetujui oleh lebih dari ½ (satu per dua) bagian dari jumlah anggota yang hadir, kecuali apabila ditentukan lain dalam Anggaran Dasar ini. ---------------------------------------------------------------------------------------------------------

(2) Apabila kuorum sebagaimana dimaksud dalam ayat (1) di atas tidak tercapai, maka Rapat Anggota tersebut ditunda untuk waktu paling lama 7 (tujuh) hari, untuk rapat kedua dan diadakan pemanggilan kembali kedua kalinya. ------------------------

(3) Apabila dalam rapat kedua sebagaimana yang dimaksud ayat (2) diatas kuorum tetap belum tercapai, maka Rapat Anggota tersebut dapat dilangsungkan dan keputusannya sah serta mengikat bagi semua anggota, apabila dihadiri sekurang-kurangnya 1/3 (satu per tiga) dari jumlah anggota dan keputusan disetujui oleh 2/3 (dua per tiga) dari jumlah anggota yang hadir. ------------------------------------------------

(4) Pengaturan selanjutnya diatur dalam Anggaran Rumah Tangga. ------------------------

---------------------------------------------------- Pasal 15 ---------------------------------------------------

(1) Pengambilan keputusan Rapat Anggota berdasarkan musyawarah untuk mencapai mufakat. --------------------------------------------------------------------------------------------------

(2) Dalam hal tidak tercapai mufakat, maka pengambilan keputusan oleh rapat anggota berdasarkan suara terbanyak dari jumlah anggota yang hadir. ----------------

(3) Dalam hal dilakukan pemungutan suara, setiap anggota mempunyai hak satu suara. -----------------------------------------------------------------------------------------------------

(4) Anggota yang tidak hadir dapat mewakilkan suaranya kepada anggota lain yang hadir dalam Rapat Anggota tersebut. ------------------------------------------------------------

(5) Pemungutan suara dapat dilakukan secara terbuka dan/atau secara tertutup, kecuali mengenai diri orang dilakukan secara tertutup. -------------------------------------

(6) Keputusan Rapat Anggota dicatat dalam Berita Acara Rapat atau pernyataan keputusan rapat yang ditanda tangani Notaris. ------------------------------------------------

(7) Koperasi dapat juga mengambil keputusan terhadap sesuatu hal tanpa mengadakan Rapat Anggota dengan ketentuan semua anggota koperasi harus diberitahukan secara tertulis dan seluruh anggota Koperasi memberikan persetujuan mengenai hal (usul keputusan) tersebut secara tertulis serta menandatangani persetujuan tersebut, tanpa ada tekanan dari Pengurus dan atau pihak-pihak tertentu. ----------------------------------------------------------------------------------

(8) Pengaturan selanjutnyan diatur dalam Anggaran Rumah Tangga. ----------------------



---------------------------------------------------- Pasal 16 --------------------------------------------------

Tempat, acara, tata tertib dan bahan materi Rapat Anggota harus sudah disampaikan terlebih dahulu kepada anggota sekurang-kurangngya 7 (tujuh) hari sebelum pelaksanaan Rapat Anggota. -----------------------------------------------------------------------------

---------------------------------------------------- Pasal 17--------------------------------------------------

(1) Rapat Anggota diselenggarakan oleh Pengurus Koperasi, kecuali Anggaran Dasar menentukan lain. --------------------------------------------------------------------------------------

(2) Rapat Anggota dapat dipimpin langsung oleh Pengurus Koperasi dan/atau oleh Pimpinan Sidang dan Sekretaris Sidang yang dipilih dalam Rapat Anggota tersebut. --------------------------------------------------------------------------------------------------

(3) Pemilihan pimpinan dan sekretaris sidang dipimpin oleh Pengurus Koperasi dari anggota yang hadir, yang tidak memangku jabatan Pengurus, Pengawas dan Pengelolan atau Karyawan Koperasi. -----------------------------------------------------------

(4) Setiap Rapat Anggota harus dibuat Berita Acara Rapat yang ditandatangani oleh Notaris. ---------------------------------------------------------------------------------------------------

(5) Berita Acara keputusan Rapat Anggota yang telah ditandatangani oleh Notaris menjadi bukti yang sah terhadap semua anggota koperasi dan pihak ketiga. ---------

---------------------------------------------------- Pasal 18-------------------------------------------------

(1) Rapat Anggota Tahunan diadakan dalam waktu paling lambat 3 (tiga) bulan sesudah tutup tahun buku, kecuali ada pengaturan lain dalam anggaran dasar. -----

(2) Rapat Anggota Tahunan membahas dan mengesahkan : ----------------------------------a. laporan pertanggung-jawaban Pengurus atas pelaksanaan tugasnya;-------------b. neraca perhitungan laba rugi tahun buku yang berakhir 31 (tiga puluh satu) Desember; ----------------------------------------------

--------------------------------------------c. penggunaan dan pembagian Sisa Hasil Usaha; ------------------------------------------d. pertanggung-jawaban pelaksanaan tugas pengawas dalam satu tahun buku. ---

(3) Rapat Anggota rencana kerja dan rencana anggaran pendapatan dan belanja membahas dan mengesahkan rencana kerja dan rencana Anggaran belanja pendapatan dan belanja koperasi juga harus dilaksanakan tiap tahun buku, paling lambat 1 (satu) bulan sebelum tahun buku/anggaran yang bersangkutan dilaksanakan, yang diajukan oleh Pengurus dan Pengawas. ------------------------------

(4) Apabila Rapat Anggota rencana kerja dan rencana anggaran pendapatan dan belanja seperti tersebut pada ayat (3) di atas belum mampu dilaksanakan oleh Koperasi karena alasan yang obyektif dan rasional seperti efi siensi maka: -----------a. Rapat Anggota rencana kerja dan rencana anggaran pendapatan dan belanja dapat dilaksanakan bersama dengan Rapat Anggota

Tahunan dengan acara rapat tersendiri, dengan ketentuan Rapat Anggota Tahunan harus dilaksanakan paling lambat 3 (tiga) bulan setelah tutup tahun buku; ---------------

b. Selama Rapat Anggota rencana kerja dan rencana anggaran pendapatan dan belanja belum disahkan oleh Rapat Anggota dalam pelaksanaan tugasnya Pengurus berpedoman pada Rapat Anggota rencana kerja dan rencana anggaran pendapatan dan belanja tahun sebelumnya yang telah mendapat persetujuan; ----------------------------------------------------------------------------------------

c. Pengaturan selanjutnya diatur dalam Anggaran Rumah Tangga atau pengaturan khusus.-------------------------------------------------------------------------------

---------------------------------------------------- Pasal 19 -------------------------------------------------

(1) Rapat Anggota Khusus diadakan untuk:---------------------------------------------------------a. Mengubah Anggaran Dasar dan Anggaran Rumah Tangga Koperasi dengan ketentuan; -----------------------------------------------

-------------------------------------------1). harus dihadiri oleh sekurang-kurangnya ¾ (tiga per empat) dari jumlah anggota; ------------------------------------------------

----------------------------------------2). keputusan sah apabila disetujui oleh sekurang-kurangnya 2/3 (dua per tiga) dari jumlah anggota yang hadir. ---------------

------------------------------------------

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b. Pembubaran, penggabungan, peleburan dan pemecahan koperasi dengan ketentuan; ------------------------------------------------------------------------------------------1). harus dihadiri oleh sekurang-kurangnya ¾ (tiga per empat) dari jumlah anggota. ------------------------------------------------

----------------------------------------2). keputusan harus disetujui oleh ¾ (tiga per empat) dari jumlah anggota yang hadir. dihadiri oleh sekurang-kurangnya ¾

(tiga per empat) dari jumlah anggota. ----------------------------------------------------------------------------------------c. Pemberhentian, pemilihan dan pengangkatan Pengurus dan Pengawas dengan ketentuan : -------------------------------------------

------------------------------------1) harus dihadiri oleh lebih dari ½ (satu per dua) dari jumlah anggota, -----------2) keputusan harus disetujui oleh sekurang-kurangnya 2/3 (dua per tiga) dari jumlah anggota yang

hadir.----------------------------------------------------------------(2) Ketentuan dan pengaruan lebih lanjut diatur dalam Anggaran Rumah Tangga dan/atau ketentuan

khusus.-------------------------------------------------------------------------

---------------------------------------------------- Pasal 20-------------------------------------------------

(1) Rapat Anggota Luar Biasa dapat diselenggarakan apabila dipandang sangat diperlukan adanya keputusan yang kewenangannya ada pada Rapat Anggota dan tidak dapat menunggu dilaksanakannya Rapat Anggota dan tidak dapat menunggu dilaksanakannya Rapat Anggota bisas seperti diatur dalam pasal 18 diatas; ---------

(2) Rapat Anggota Luar Biasa sebagaimana dimaksud pada ayat (1) diatas diadakan apabila:---------------------------------------------------------------------------------------------------

a. ada permintaan paling sedikit lebih dari 30 % (tiga puluh persen) dari jumlah anggota; dan/atau; -------------------------------------------------------------------------------

b. atas keputusan rapat Pengurus atau keputusan rapat Pengurus dan Pengawas; dan/atau; ----------------------------------------------------------------------------

c. dalam hal keadaan yang sangat mendesak untuk segera memperoleh keputusan Rapat Anggota; ---------------------------------------------------------------------

d. Negara dalam keadaan bahaya atau perang, tidak memungkinkan diadakan Rapat Anggota biasa dan Rapat Anggota Khusus seperti tersebut pada Pasal 19 diatas; -------------------------------------------------------------------------------------------

(3) Rapat Anggota Luar Biasa sah dan keputusannya mengikat seluruh anggota, apabila:----------------------------------------------------------------------------------------------------

a. dihadiri oleh sekurang-kurangnya ½ (satu per dua) dari jumlah anggota dan keputusannya disetujui oleh 2/3 (dua per tiga) dari jumlah anggota yang hadir;-

b. untuk maksud pada ayat (2) butir d di atas, harus dihadiri oleh sekurang-kurangnya 1/5 (satu per lima) dari jumlah anggota dan keputusannya disetujui oleh 2/3 (dua per tiga) dari jumlah anggota yang hadir. --------------------------------

(4) Ketentuan dan pengaturan selanjutnya diatur didalam Anggaran Rumah Tangga.--

-------------------------------------------------------- BAB VI --------------------------------------------------

--------------------------------------------------- PENGURUS -----------------------------------------------

---------------------------------------------------- Pasal 21 ---------------------------------------------------

(1) Pengurus Koperasi dipilih dari dan oleh Anggota dalam Rapat Anggota. --------------

(2) Persyaratan untuk dapat dipilih menjadi Pengurus sebagai berikut: ---------------------

a. mempunyai kemampuan pengetahuan tentang perkoperasian, kejujuran, loyal dan berdedikasi terhadap Koperasi; ---------------------------------------------------------



b. mempunyai keterampilan kerja dan wawasan serta usaha serta semangat kewirausahaan; -----------------------------------------------------------------------------------

c. sudah menjadi anggota Koperasi sekurang-kurangnya 2 (dua) tahun; -------------d. antara Pengurus tidak mempunyai hubungan keluarga sedarah dan semenda sampai derajat ke tiga; --------------------------------

------------------------------------------(3) Pengurus dipilih untuk masa jabatan 3 (tiga) tahun; -----------------------------------------

(4) Anggota Pengurus yang telah diangkat dicatat dalam Buku Daftar Pengurus; --------

(5) Anggota Pengurus yang masa jabatannya telah berakhir dapat dipilih kembali untuk masa jabatan berikutnya, apabila yang bersangkutan berprestasi bagus dalam mengelola Koperasi. -------------------------------------------------------------------------

(6) Sebelum, melaksanakan tugas dan kewajibannya sebagai pengurus harus terlebih dahulu mengucapkan sumpah atau janji di depan Rapat Anggota; ----------------------

(7) Tata cara pemilihan pengangkatan, pemberhentian dan sumpah Pengurus diatur dan ditetapkan dalam Anggaran Rumah Tangga. --------------------------------------------

---------------------------------------------------- Pasal 22 --------------------------------------------------

(1) Jumlah Pengurus sekurang-kurangnya......................................................................(2) Pengurus terdiri dari sekurang-kurangnya: -----------------------------------------------------

a. seorang ketua; ------------------------------------------------------------------------------------b. seorang sekretaris; -------------------------------------------------------------------------------c. seorang bendahara. -----------------------------------------------------------------------------

(3) Susunan pengurus Koperasi diatur lebih lanjut dalam Anggaran Rumah Tangga sesuai dengan kebutuhan organisasi dan kegiatan usaha Koperasi; --------------------

(4) Pengurus dapat mengangkat Manajer yang diberi wewenang dan kuasa untuk mengelola usaha Koperasi; -------------------------------------------------------------------------

(5) Apabila Koperasi belum mampu mengangkat Manajer, maka salah satu dari Pengurus dapat bertindak sebagai pengelola dan Pengurus yang bersangkutan tidak harus melepaskan sementara jabatanya sebagai pengurus; -----------------------

(6) Pengaturan lebih lanjut tentang susunan, tugas pokok, wewenang dan tanggung jawab serta tata cara pengangkatan Pengurus dan Pengawas diatur lebih lanjut dalam Anggaran Rumah Tangga; -----------------------------------------------------------------

---------------------------------------------------- Pasal 23 --------------------------------------------------

Tugas dan kewajiban Pengurus adalah : ---------------------------------------------------------------

a. menyelenggarakan dan mengendalikan usaha Koperasi; ----------------------------------b. melakukan seluruh perbuatan hukum atas nama Koperasi; -------------------------------c. mewakili Koperasi dalam dan diluar pengadilan; ----------------------------------------------d. mengajukan rencana kerja, anggaran pendapatan dan belanja Koperasi; -------------e. menyelenggarakan rapat anggota serta mempertanggungjawabkan pelaksanaan tugas kepengurusannya; --------------------------------

--------------------------------------------f. memutuskan penerimaan anggota baru, penolakan anggota baru serta pemberhentian anggota; ------------------------------------------

----------------------------------g. membantu pelaksanaan tugas pengawasan dengan memberikan keterangan dan memperlihatkan bukti-bukti yang diperlukan; -----

---------------------------------------------h. memberikan keterangan dan penjelasan kepada anggota mengenai jalannya organisasi dan usaha Koperasi; -----------------------------

--------------------------------------i. memelihara kerukunan diantara anggota dan mencegah segala hal yang menyebabkan perselisihan; --------------------------------------

-----------------------------------

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j. menanggung kerugian sebagai akibat karena kelalaiannya, dengan ketentuan ; ----1). jika kerugian yang timbul sebagai akibat kelalaian seorang atau beberapa anggota Pengurus maka kerugian ditanggung oleh

anggota Pengurus yang bersangkutan; -------------------------------------------------------------------------------------2). Jika kerugian yang timbul sebagai kebijaksanaan yang telah diputuskan dalam Rapat Pengurus maka anggota Pengurus tanpa

kecuali menanggung kerugian yang diderita koperasi; ---------------------------------------- ---------------------------------k. menyusun ketentuan mengenai tugas, wewenang dan tanggung jawab anggota Pengurus, serta ketentuan mengenai pelayanan

terhadap anggota; --------------------l. meminta audit kepada koperasi jasa audit dan/atau Akuntan Publik yang biayanya ditanggung oleh koperasi dan biaya audit tersebut

dimasukan dalam anggaran biaya koperasi;------------------------------------------------------------------------------------------m. Pengurus dan salah seorang yang ditunjuknya berdasarkan ketentuan yang berlaku dapat melakukan tindakan hukum yang bersifat

pengurusan dan pemilikan dalam batas-batas tertentu berdasarkan persetujuan tertulis dari Keputusan Rapat Pengurus dan Pengawas Koperasi dalam hal-hal sebagai berikut :----------------------1) meminjam atau meminjamkan uang atas nama Koperasi dengan jumlah tertentu yang ditetapkan dalam Anggaran Rumah

Tangga dan peraturan khusus Koperasi.---------------- -----------------------------------------------------------------

2) membeli, menjual atau dengan cara lain memperoleh atau melepaskan hak atas barang bergerak milik Koperasi dengan jumlah tertentu,yang ditetapkan dalam Anggaran Rumah Tangga dan peraturan khusus Koperasi.------------------

---------------------------------------------------- Pasal 24 ---------------------------------------------------

Pengurus mempunyai hak ; -------------------------------------------------------------------------------

a. menerima imbalan balas jasa sesuai keputusan Rapat Anggota; ------------------------b. mengangkat dan memberhentikan Manajer dan karyawan Koperasi; -------------------c. membuka cabang/perwakilan usaha baik di dalam maupun di luar Wilayah Republik Indonesia sesuai keputusan Rapat Anggota;

--------------------------------------d. melakukan upaya-upaya dalam rangka mengembangkan usaha Koperasi; -----------e. meminta laporan dari Manajer secara berkala dan sewaktu-waktu bila diperlukan.--

--------------------------------------------------- Pasal 25 ---------------------------------------------------

(1) Pengurus dapat diberhentikan oleh Rapat Anggota sebelum masa jabatannya berakhir apabila terbukti; ----------------------------------------------------------------------------a. melakukan kecurangan atau penyelewengan yang merugikan usaha dan keuangan dan nama baik Koperasi; ----------------------

-----------------------------------b. tidak mentaati ketentuan undang-undang perkoperasian beserta peraturan dan ketentuan pelaksanaannya, Anggaran Dasar,

Anggaran Rumah Tangga dan keputusan Rapat Anggota;----------------------------------------------------------------------c. sikap maupun tindakannya menimbulkan akibat yang merugikan bagi Koperasi khususnya dan gerakan koperasi pada

umumnya;---------------------------------------d. melakukan dan terlibat dalam tindak pidana terutama di bidang ekonomi dan keuangan dan tindak pidana lain yang telah

diputus oleh pengadilan.--------------(2) Dalam hal salah seorang anggota Pengurus berhenti sebelum masa jabatan berakhir, Rapat Pengurus dengan dihadiri wakil Pengawas

dapat mengangkat penggantinya dengan cara : ------------------------------------------------------------------------a. menunjuk salah seorang Pengurus untuk merangkap jabatan tersebut; -----------b. mengangkat dari kalangan anggota untuk menduduki jabatan Pengurus tersebut. -----------------------------------------------------

----------------------------------------(3) Pengangkatan pengganti Pengurus yang berhenti sebagaimana diatur dalam ayat (2) harus dipertanggungjawabkan oleh Pengurus

dan disahkan dalam Rapat Anggota berikutnya. -----------------------------------------------------------------------------------



------------------------------------------------------- BAB VII --------------------------------------------------

-------------------------------------------------- PENGAWAS -----------------------------------------------

---------------------------------------------------- Pasal 26 ---------------------------------------------------

(1) Pengawas dipilih dari dan oleh anggota dalam Rapat Anggota..--------------------------(2) Yang dapat dipilih menjadi Pengawas adalah anggota yang memenuhi syarat sebagai berikut: ---------------------------------------------

-------------------------------------------a. mempunyai pengetahuan tentang perkoperasian, pengawasan dan akuntansi, jujur, dan berdedikasi terhadap Koperasi; --------

------------------------------------------b. memiliki kemampuan keterampilan kerja dan wawasan di bidang pengawasan; c. sudah menjadi anggota sekurang-kurangnya 2 (dua) tahun. -------------------------

(3) Pengawas dipilih untuk masa jabatan 3 (tiga) tahun. ----------------------------------------(4) Pengawas terdiri dari sekurang-kurangnya 3 (tiga) orang ----------------------------------(5) Sebelum melaksanakan tugas dan kewajiban sebagai Pengawas, harus terlebih dahulu mengucap sumpah atau janji di depan Rapat

Anggota. ---------------------------(6) Tata cara pemilihan, pengangkatan dan pemberhentian Pengawas diatur dan sumpah Pengawas ditetapkan dalam Anggaran Rumah

Tangga. ------------------------

---------------------------------------------------- Pasal 27 ---------------------------------------------------

(1) Dalam hal Koperasi telah mampu mengangkat Manajer yang profesional, maka pengawasan dapat diadakan secara tetap atau diadakan sewaktu-waktu sesuai dengan kebutuhan dan ditentukan dengan keputusan Rapat Anggota. -----------------

(2) Dalam hal Koperasi tidak mengangkat Pengawas, maka : ---------------------------------a. pengangkatan Manajer tersebut harus langsung ditetapkan oleh Rapat Anggota; -------------------------------------------------------

-------------------------------------b. fungsi dan tugas Pengawas menjadi tugas dan tanggung jawab Pengurus dan Pengurus tidak turut campur tangan dalam

pengelolan kegiatan usaha, keuangan yang dijalankan oleh Koperasi. -------------------------------------------------(3) Audit keuangan harus dilakukan oleh Akuntan Publik dan audit non keuangan oleh tenaga ahli di bidangnya atas permintaan

Pengurus. ----------------------------------------(4) Pengaturan selanjutnya diatur di dalam Anggaran Rumah Tangga. ---------------------

---------------------------------------------------- Pasal 28 ---------------------------------------------------

Hak dan kewajiban Pengawas adalah : -----------------------------------------------------------------

a. melakukan pengawasan terhadap pelaksanaan kebijaksanaan dan pengelolaan Koperasi;-------------------------------------------------------------------------------------------------

b. meneliti catatan dan pembukuan yang ada pada Koperasi; --------------------------------c. mendapatkan segala keterangan yang diperlukan; -------------------------------------------d. memberikan koreksi, saran, teguran dan peringatan kepada Pengurus; ---------------e. merahasiakan hasil pengawasannya terhadap pihak ketiga; ------------------------------f. membuat laporan tertulis tentang hasil pelaksanaan tugas pengawasan kepada Rapat Anggota. --------------------------------------------

--------------------------------------------

---------------------------------------------------- Pasal 29 ---------------------------------------------------

Pengawas berhak menerima imbalan jasa sesuai keputusan Rapat Anggota. ---------------

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---------------------------------------------------- Pasal 30 --------------------------------------------------

(1) Pengawas dapat diberhentikan oleh Rapat Anggota sebelum masa jabatan berakhir apabila terbukti : ----------------------------------------------------------------------------a. melakukan tindakan, perbuatan yang merugikan keuangan dan nama baik Koperasi; -------------------------------------------------

-------------------------------------------b. tidak mentaati ketentuan undang-undang perkoperasian beserta pengaturan, ketentuan pelaksanaannya, Anggaran Dasar,

Anggaran Rumah Tangga dengan keputusan Rapat Anggota. ----------------------------------------------------------(2) Dalam hal salah seorang anggota Pengawas berhenti sebelum masa jabatan berakhir, rapat Pengawas dengan dihadiri oleh Wakil

Pengurus dapat mengangkat pengganti dengan cara : -----------------------------------------------------------------------------a. jabatan dan tugas tersebut dirangkap oleh anggota Pengawas yang lain; --------b. mengangkat dari kalangan anggota untuk menduduki jabatan Pengawas tersebut. -----------------------------------------------------

----------------------------------------(3) Pengangkatan pengganti sebagaimana tersebut dalam ayat (2) di atas, dilaporkan oleh Pengawas kepada Rapat Anggota yang

terdekat setelah penggantian yang bersangkutan untuk diminta pengesahan atau memilih mengangkat Pengawas yang lain. ------------------------------------------------------------------------------------------------

----------------------------------------------------- BAB VIII ---------------------------------------------------

------------------------------------- PENGELOLAAN USAHA -------------------------------------------

---------------------------------------------------- Pasal 31 ---------------------------------------------------

(1) Pengelolaan usaha Koperasi dapat dilakukan oleh Manajer dengan dibantu beberapa orang karyawan yang diangkat oleh Pengurus melalui perjanjian atau kontrak kerja yang dibuat secara tertulis. -------------------------------------------------------

(2) Pengurus dapat secara langsung melakukan pengelolaan kegiatan usaha koperasi atau ............................................................................................................................

(3) Pengangkatan seperti tersebut dalam ayat (1) harus mendapat persetujuan Rapat Anggota. -------------------------------------------------------------------------------------------------

(4) Persyaratan untuk diangkat jadi Manajer adalah : --------------------------------------------a. mempunyai keahlian di bidang usaha atau pernah mengikuti pelatihan di bidang usaha koperasi atau magang dalam usaha

koperasi; -------------------------b. mempunyai pengetahuan dan wawasan di bidang usaha; ----------------------------c. tidak pernah melakukan tindakan tercela di bidang keuangan dan atau dihukum karena terbukti melakukan tindak pidana di

bidang keuangan; ----------d. memiliki akhlak dan moral yang baik; -------------------------------------------------------e. tidak mempunyai hubungan keluarga sedarah dan semenda sampai derajat ketiga dengan Pengurus; -------------------------------

----------------------------------------f. belum pernah terbukti melakukan tindak pidana apapun. ------------------------------

(5) Dalam melaksanakan tugasnya Manajer bertanggungjawab kepada Pengurus. -----(6) Dalam hal Pengurus menjadi pengelola, maka disamping harus memenuhi persyaratan Pasal 23 juga harus memenuhi ketentuan

ayat (4) Pasal 31 ini.

---------------------------------------------------- Pasal 32 ---------------------------------------------------

Tugas dan kewajiban Manajer adalah : ----------------------------------------------------------------

a. melaksanakan kebijakan Pengurus dalam mengelola usaha Koperasi; ----------------b. mengendalikan dan mengkoordinir semua kegiatan usaha yang dilaksanakan oleh para karyawan; ---------------------------------------

--------------------------------------------------c. melakukan pembagian tugas secara jelas dan tegas mengenai bidang dan pelaksanaannya; --------------------------------------------------

-------------------------------------



d. mentaati segala ketentuan yang telah diatur dalam Anggaran Dasar, Anggaran Rumah Tangga, keputusan Rapat Anggota, kontrak kerja dan ketentuan lainnya yang berlaku pada Koperasi yang berkaitan dengan pekerjaannya; ---------------------

e. menanggung kerugian usaha Kopersi sebagai akibat dari kelalaian dan/atau tindakan yang disengaja atas pelaksanaan tugas yang dilimpahkan. -------------------

---------------------------------------------------- Pasal 33 ---------------------------------------------------

(1) Hak dan wewenang Manajer adalah : ------------------------------------------------------------a. menerima penghasilan sesuai perjanjian kerja yang telah disepakati dan ditandatangani bersama oleh Pengurus dan Manajer.

---------------------------------b. mengembangkan usaha dan kemampuan diri untuk melaksanakan tugas yang dibebankan; ------------------------------------------

---------------------------------------------c. membela diri atas segala tuntutan yang ditujukan kepada dirinya; ------------------d. bertindak untuk dan atas nama Pengurus dalam rangka menjalankan usaha; ---e. menetapkan pedoman pelaksanaan, pengelolaan usaha atau standar operasi prosedur yang disahkan oleh Rapat Anggota. ------

--------------------------------------(2) Ketentuan lebih lanjut mengenai susunan tugas, kewajiban, hak dan wewenang Manajer dan karyawan diatur lebih lanjut dalam

Anggaran Rumah Tangga, ketentuan khusus dan kontrak kerja. -------------------------------------------------------------

------------------------------------------------------ BAB IX ----------------------------------------------------

------------------------------------------------- PENASEHAT -----------------------------------------------

---------------------------------------------------- Pasal 34 ---------------------------------------------------

(1) Apabila diperlukan Pengurus dapat mengangkat Penasehat atas persetujuan Rapat Anggota. ----------------------------------------------------------------------------------------

(2) Penasehat memberi saran/anjuran kepada Pengurus untuk kemajuan organisasi, usaha Koperasi baik diminta atau tidak diminta. ----------------------------------------------

(3) Penasehat berhak menerima penghasilan/imbalan jasa sesuai dengan keputusan Rapat Anggota. ----------------------------------------------------------------------------------------

------------------------------------------------------ BAB X ----------------------------------------------------

-------------------------------------- PEMBUKUAN KOPERASI ----------------------------------------

---------------------------------------------------- Pasal 35 ---------------------------------------------------

(1) Tahun Buku Koperasi adalah tanggal 1 Januari sampai dengan tanggal 31 (tiga puluh satu) Desember, dan pada akhir bulan Desember tiap-tiap akhir tahun pembukuan Koperasi ditutup. ----------------------------------------------------------------------

(2) Koperasi wajib menyelenggarakan pencatatan dan pembukuan sesuai dengan prinsip-prinsip akuntansi yang berlaku di Indonesia dan standar akuntansi koperasi pada khususnya serta standar akuntansi Indonesia pada umumnya. -------------------

(3) Dalam waktu paling lambat 3 (tiga) bulan setelah pembukuan Koperasi ditutup, maka Pengurus wajib menyusun dan menyampaikan Laporan Tahunan yang telah diaudit oleh Pengawas sesuai ketentuan peraturan perundang-undangan yang berlaku, dan ditanda-tangani oleh semua anggota Pengurus untuk disampaikan kepada Rapat Anggota yang disertai hasil audit Pengawas. -------------------------------

(4) Apabila diperlukan, laporan tahunan Pengawas dapt diaudit oleh akuntan publik atas permintaah Rapat Anggota, atau Koperasi tidak mengangkat Pengawas tetap, maka laporan tahunan Pengurus harus diaudit oleh akuntan publik sebelum diajukan ke Rapat Anggota dan hasil audit tersebut menjadi perbandingan laporan pertanggungjawaban Pengurus. -----------------------------------------------------------------

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(5) Ketentuan pengaturan lebih lanjut mengenai isi, bentuk, susunan laporan pertanggungjawaban Pengurus dan pelaksanaan audit diatur dalam Anggaran Rumah Tanggga dan peraturan tertulis .

------------------------------------------------------ BAB XI ----------------------------------------------------

--------------------------------------------- MODAL KOPERASI -----------------------------------------

---------------------------------------------------- Pasal 36 ---------------------------------------------------

(1) Koperasi mempunyai modal yang diperoleh dari uang simpanan pokok, simpanan wajib, simpanan sukarela, uang pinjaman dan penerimaan lain yang sah. ------------

(2) Modal dasar yang disetor pada saat Pendirian Koperasi ditetapkan sebesar Rp...........(.......) yang berasal dari Simpanan Pokok, Simpanan Wajib, dan .......... dari para pendiri. ---------------------------------------------------------------------------------------

(3) Rapat Anggota menetapkan jumlah setinggi-tingginya yang dapat disediakan sebagai uang kas, dan kelebihannya dengan segera harus disimpan atas nama Koperasi pada Koperasi……………………………………………………………………

(4) Uang kelebihan yang disimpan itu hanya dapat diminta kembali dengan kwitansi yang ditandatangani oleh sekurang-kurangnya 2 (dua) orang anggota Pengurus atau lebih seorang pegawai yang ditunjuk oleh Pengurus. ---------------------------------

---------------------------------------------------- BAB XII -----------------------------------------------------

------------------------------------------- SIMPANAN ANGGOTA ---------------------------------------

---------------------------------------------------- Pasal 37 ---------------------------------------------------

(1) Setiap anggota harus menyimpan atas namanya pada Koperasi, simpanan pokok dan simpanan wajib sejumlah Rp………(…………) yang pada waktu keanggotaan diakhiri, merupakan suatu tagihan atas Koperasi sebesar tadi, jika perlu dikurangi dengan bagian tanggungan kerugian . -----------------------------------------------------------

(2) Uang simpanan pokok pada prinsipnya harus dibayar sekaligus, akan tetapi Pengurus dengan pertimbangan tertentu dapat mengijinkan anggota untuk membayarnya dengan angsuran perbulan, maksimal ……………kali anggsuran. ---

(3) Tiap anggota yang akan mengangsur simpanan pokok harus menyatakan kesanggupan itu secara tertulis. -------------------------------------------------------------------

(4) Tiap anggota diwajibkan untuk membayar simpanan wajib atas namanya pada Koperasi sebagaimana ditetapkan dalam Anggaran Rumah Tangga/peraturan khusus. ---------------------------------------------------------------------------------------------------

(5) Setiap anggota digiatkan untuk mengadakan simpanan sukarela atas namanya pada Koperasi menurut kehendaknya sendiri, baik tabungan atau simpanan berjangka. -----------------------------------------------------------------------------------------------

(6) Anggota diperbolehkan meminjam uang setelah menjadi anggota selama 3 (tiga) bulan. -----------------------------------------------------------------------------------------------------

---------------------------------------------------- Pasal 38 ---------------------------------------------------

Apabila keanggotaan berakhir menurut Pasal 12: ---------------------------------------------------

a. Butir a dan b maka uang simpanan pokok dan uang simpanan wajib setelah dipotong dengan bagian tanggungan yang ditetapkan, dikembalikan kepada yang berhak dengan segera selambat-lambatnya 1 (satu) bulan kemudian. -----------------

b. Butir c maka uang simpanan pokok dan uang simpanan wajib setelah dipotong dengan bagian tanggungan yang ditetapkan, dikembalikan kepada bekas anggota dalam waktu 1 (satu) bulan sesudah Rapat Anggota Tahunan yang akan datang. --

c. Butir d maka uang simpanan pokok menjadi kekayaan koperasi dan pengembalian simpanan wajib diserahkan kepada Rapat Anggota dengan mempertimbangkan kesalahan anggota yang mengakibatkan pemecatan. ---------------------------------------



--------------------------------------------------- BAB XIII -----------------------------------------------------

--------------------------------------------- SISA HASIL USAHA -----------------------------------------

---------------------------------------------------- Pasal 40 ---------------------------------------------------

(1) Sisa Hasil Usaha yaitu pendapatan Koperasi yang diperoleh dalam 1 (satu) tahun buku dipotong dengan penyusutan nilai barang dan segala biaya yang dikeluarkan dalam tahun buku termasuk pajak, terdiri atas 2 bagian: -----------------------------------a. yang diperoleh dari usaha yang diselenggarakan untuk Anggota Koperasi; ---b. yang diperoleh dari usaha yang diselenggarakan untuk bukan Anggota Koperasi; serta ---------------------------------------------

-------------------------------------c. pendapatan lain dari non operasional. ----------------------------------------------------

(2) Sisa Hasil Usaha yang diperoleh dari usaha yang diselenggarakan untuk anggota dibagi sebagai berikut: -------------------------------------------------------------------------------a. ………...% untuk cadangan. -------------------------------------------------------------------b. …………% untuk anggota menurut perbandingan jasanya dalam usaha Koperasi untuk memperoleh sisa pendapatan usaha.

----------------------------------c. …………% untuk anggota menurut perbandingan simpanannya dengan ketentuan tidak melebihi suku bunga yang berlaku

pada bank-bank pemerintah. ----------------------------------------------------------------------------------------d. ………….% untuk dana Pengurus dan Pengawas; --------------------------------------e. ................% untuk dana kesejahteraan pegawai; ----------------------------------------f. ................% untuk dana kesejahteraan Koperasi; ---------------------------------------g. ................% untuk dana pembangunan daerah kerja; ----------------------------------h. ................% untuk dana sosial; ---------------------------------------------------------------i. ................% untuk dana insentif Manager; -------------------------------------------------j. ..............................................................................................................................

(3) Sisa Hasil Usaha yang diperoleh dari usaha yang diselenggarakan untuk pihak bukan anggota, dibagi sebagai berikut: ---------------------------------------------------------a. ................% untuk cadangan; -----------------------------------------------------------------b. ………….% untuk dana Pengurus dan Pengawas; --------------------------------------c. ………….% untuk dana kesejahteraan pegawai/karyawan; ---------------------------d. ………….% untuk dana pendidikan Koperasi; --------------------------------------------e. ………….% untuk dana sosial; ----------------------------------------------------------------f. ………….% untuk dana pembangunan daerah kerja; -----------------------------------g. ………….% untuk dana insentif Manager; -------------------------------------------------h. ……………………………………………………………………………………………

(4) Penggunaan dana-dana pendidikan koperasi dan pembangunan daerah kerja diatur dalam Anggaran Rumah Tangga atau diputuskan dalam Rapat Anggota Tahunan. ------------------------------------------------------------------------------------------------

---------------------------------------------------- Pasal 41 ---------------------------------------------------

(1) Uang cadangan adalah kekayaan Koperasi yang disediakan untuk kerugian sehingga tidak boleh dibagikan kepada anggota. ---------------------------------------------

(2) Rapat Anggota dapat memutuskan untuk mempergunakan paling tinggi 75% dari seluruh jumlah cadangan untuk perluasan usaha Koperasi. -------------------------------

(3) Sekurang-kurangnya 25% dari uang cadangan harus disimpan dengan bersifat giro pada Bank yang ditunjuk oleh Pejabat. ----------------------------------------------------

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--------------------------------------------------- BAB XIV -----------------------------------------------------

------------------------------------- TANGGUNGAN ANGGOTA --------------------------------------

---------------------------------------------------- Pasal 42 ---------------------------------------------------

(1) Bilamana Koperasi dibubarkan dan pada saat penyelesaian pembubaran ternyata bahwa kekayaan Koperasi tidak mencukupi untuk melunasi segala perjanjian dan kewajiban, maka anggota dan mereka yang telah berhenti sebagai anggota dalam waktu satu tahun sebelum pembubaran koperasi diwajibkan menanggung kerugian itu masing-masing sebatas sebanyak simpanan pokok dan simpanan wajib. ---------

(2) Bila menurut kenyataan ada anggota dan mereka yang berhenti sebagai anggota dalam waktu 1 (satu) tahun yang sebelum pembubaran koperasi, tidak mampu memenuhi kewajibannya sebagaimana ditentukan dalam pasal ini, maka kekurangan itu dibebankan kepada anggota lain, sehingga jumlah kerugian yang menutut perhitungan harus dibayar oleh para anggota dan mereka yang berhenti sebagai anggota dapat dipenuhi. ------------------------------------------------------------------

(3) Segala persoalan mengenai penentuan tindakan atau kejadian yang menyebabkan timbulnya kerugian diselesaikan menurut ketentuan yang berlaku. ----------------------

(4) Segala persoalan mengenai penentuan tindakan atau kejadian yang menyebabkan kerugian, diselesaikan menurut hukum yang berlaku. ---------------------------------------

---------------------------------------------------- Pasal 43 ---------------------------------------------------

(1) Kerugian yang diderita oleh Koperasi pada akhir tahun buku, ditutup dengan uang cadangan. -----------------------------------------------------------------------------------------------

(2) Jika kerugian yang diderita oleh Koperasi pada akhir suatu tahun buku tidak dapat ditutup dengan uang cadangan sebagaimana dimaksud ayat 1, maka Rapat Anggota dapat memutuskan untuk membebankan bagian kerugian tersebut (jumlah kerugian dikurangi dengan uang cadangan yang tersedia) kepada anggota dan kepada mereka yang telah berhenti sebagai anggota dalam tahun buku yang bersangkutan, masing-masing terbatas simpanan Pokok. ---------------------------------

---------------------------------------------------- Pasal 44 ---------------------------------------------------

Anggota–anggota yang telah berhenti dari Koperasi tidak menanggung kerugian dari usaha yang tidak turut diputuskan oleh mereka sesudah keluar dari Koperasi. --------------

---------------------------------------------------- BAB XV ----------------------------------------------------

----------------------------------------------- PEMBUBARAN ---------------------------------------------

---------------------------------------------------- Pasal 45 ---------------------------------------------------

(1) Pembubaran Koperasi dapat dilaksanakan berdasarkan : ---------------------------------a. keputusan Rapat Anggotan; -------------------------------------------------------------------b. keputusan Pemerintah, apabila : -------------------------------------------------------------

- terdapat bukti bahwa koperasi yang bersangkutan tidak memenuhi ketentuan undang-undang perkoperasian; --------------------------------------------

- kegiatannya bertentangan dengan ketertiban umum dan/atau kesusilaan; –- kelangsungan hidupnya tidak dapat lagi diharapkan. ------------------------------

(2) Pembubaran oleh Rapat Anggota didasarkan pada : ----------------------------------------a. jangka waktu berdirinya Koperasi telah berakhir; ----------------------------------------b. atas permintaan sekurang-kurangnya ¾ (tiga per empat) dari jumlah anggota.-c. Koperasi tidak lagi melakukan kegiatan usaha. ------------------------------------------



---------------------------------------------------- Pasal 46 ---------------------------------------------------

(1) Dalam hal Koperasi hendak dibubarkan maka Rapat Anggota membentuk Tim Penyelesai yang terdiri dari unsur anggota, Pengurus dan pihak lain yang dianggap perlu dan diberi kuasa untuk menyelesaikan pembubaran Koperasi. ------

(2) Tim Penyelesai mempunyai hak dan kewajiban : ---------------------------------------------a. melakukan perbuatan hukum untuk dan atas nama Koperasi dalam penyelesaian; -----------------------------------------------------

---------------------------------b. mengumpulkan keterangan yang diperlukan. ---------------------------------------------c. memanggil Pengurus, angota dan bekas anggota tertentu yang diperlukan baik sendiri-sendiri maupun bersama-sama; ---------

-------------------------------------------d. memperoleh, menggunakan dan memeriksa segala catatan dan arsip koperasi; e. menggunakan sisa kekayaan Koperasi untuk menyelesaikan kewajiban Koperasi baik kepada anggota maupun kepada pihak

ketiga; ------------------------f. membuat berita acara penyelesaian yang ditandatangani oleh Notaris dan menyampaikan kepada Pemerintah. -------------------

-------------------------------------(3) Pengurus Koperasi menyampaikan keputusan pembubaran Koperasi oleh Rapat Anggota tersebut kepada Pejabat koperasi sesuai

dengan ketentuan yang berlaku. (4) Pembayaran biaya penyelesaian didahulukan dari pada pembayaranan kewajiban lainnya. -------------------------------------------------

--------------------------------------------------

---------------------------------------------------- Pasal 47 ---------------------------------------------------

(1) Seluruh anggota wajib menanggung kerugian yang timbul pada saat pembubaran Koperasi; -------------------------------------------------------------------------------------------------

(2) Tanggungan anggota terbatas pada simpanan pokok, simpanan wajib yang sudah dibayarkan. ----------------------------------------------------------------------------------------------

(3) Anggota yang telah keluar sebelum Koperasi dibubarkan wajib menanggung kerugian, apabila kerugian tersebut terjadi selama anggota yang bersangkutan masih menjadi anggota Koperasi dan apabila keluarnya sebagai anggota Koperasi belum melewati jangka waktu 6 (enam) bulan. ------------------------------------------------

---------------------------------------------------- BAB XVI ----------------------------------------------------

---------------------------------------------------- SANKSI ----------------------------------------------------

---------------------------------------------------- Pasal 48 ---------------------------------------------------

(1) Apabila anggota Pengurus melanggar ketentuan Anggaran Dasar/Anggaran Rumah Tangga dan peraturan lainnya yang berlaku di Koperasi, dikenakan sanksi oleh Rapat Anggota berupa : -----------------------------------------------------------------------a. peringatan lisan; ----------------------------------------------------------------------------------b. peringatan tertulis; --------------------------------------------------------------------------------c. dipecat dari keanggotaan atau jabatannya; ------------------------------------------------d. diberhentikan bukan atas permintaan sendiri; --------------------------------------------e. diajukan ke Pengadilan. ------------------------------------------------------------------------

(2) Ketentuan mengenai sanksi diatur lebih lanjut dalam Anggaran Rumah Tangga.----

----------------------------------------------------- BAB XVII ------------------------------------------------

------------------------- JANGKA WAKTU BERDIRINYA KOPERASI ----------------------------

---------------------------------------------------- Pasal 49 ---------------------------------------------------

Koperasi didirikan dalam jangka waktu yang tidak terbatas. --------------------------------------

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---------------------------------------------------- BAB XVIII -------------------------------------------------

---------------- ANGGARAN RUMAH TANGGA DAN PERATURAN KHUSUS ----------------

---------------------------------------------------- Pasal 50 ---------------------------------------------------

Rapat Anggota menetapkan Anggaran Rumah Tangga dan peraturan khusus, yang memuat peraturan pelaksanaan berdasarkan ketentuan Anggaran Dasar Koperasi dan tidak bertentangan dengan Anggaran Dasar ini. -----------------------------------------------------

---------------------------------------------------- Pasal 51 ---------------------------------------------------

Anggaran Dasar ini disahkan oleh Rapat Anggota Pembentukan Koperasi yang dilaksankan pada hari.............tanggal .........................di ...................................................

----------------------------------------------------- BAB XXI --------------------------------------------------

---------------------------------------------------- PENUTUP -------------------------------------------------

---------------------------------------------------- Pasal 52 ---------------------------------------------------

(1) Terhitung mulai tanggal .............untuk pertama kalinya diangkat sebagai : ------------Pengurus : -----------------------------------------------------------------------------------------------

1. Ketua :....................................................................................Tuan : ...................................................................................

Lahir : ...................................................................................

Pada tanggal : ...................................................................................

Pekerjaan : ...................................................................................

Pemegang KTP. No. : ...................................................................................

2. Sekretaris : ...................................................................................Tuan : ...................................................................................

Lahir : ...................................................................................

Pada tanggal : ...................................................................................

Pekerjaan : ...................................................................................

Pemegang KTP. No. : ...................................................................................

3. Bendahara : ...................................................................................Tuan : ...................................................................................

Lahir : ...................................................................................

Pada tanggal : ...................................................................................

Pekerjaan : ...................................................................................



Pemegang KTP. No. : ...................................................................................

Pengawas : ----------------------------------------------------------------------------------------------

1. Tuan : ...................................................................................

Lahir : ...................................................................................

Pada tanggal : ...................................................................................

Pekerjaan : ...................................................................................

Pemegang KTP. No. : ...................................................................................

2. dst ----------------------------------------------------------------------------------------------------

(2) Pengangkatan anggota Pengurus tersebut harus disahkan dalam Rapat Anggota. - (3) Yang pertama kali diadakan, setelah Akta pendirian ini mendapat pengesahan Menteri. ----------------------------------------------------

----------------------------------------------

---------------------------------------------------- Pasal 53 ---------------------------------------------------

Tuan/Nyonya .........................................bertempat tinggal di ............................. dikuasakan untuk mengajukan permohonan pengesahan Akta Pendirian ini, dari kantor yang berwenang dan menandatangani permohonan dan dokumen lainnya yang diperlukan yang berkaitan dengan permohonan pengesahan. -----------------------------------

------------------------------------------ DEMIKIANLAH AKTA INI ---------------------------------------

- Dibuat dan ditandatangnai di ........................., pada hari dan tanggal seperti disebutkan pada bagian awal akta ini dengan dihadiri oleh ......................... keduanya pegawai Kantor Notaris dan bertempat tinggal di ........................... dan di................. sebagai saksi-saksi. -----------------------------------------------------------------

- Akta ini telah dibacakan oleh saya, Notarsi Pembuat Akta Koperasi kepada para penghadap dan saksi-saksi. Maka ditandatangani akta ini oleh para penghadap tersebut, saksi-saksi dan saya, Notaris. ---------------------------------------------------------

- Minuta akta ini ditandatangani secukupnya. ----------------------------------------------------- Dikeluarkan sebagai salinan yang sama bunyinya. ------------------------------------------

Notaris Pembuat Akta Koperasi

(...................................................)

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Appendix 3: Blank Forms

Account Number Meter Reading Data Due Data

Customer Name

Public Tap

Meter reading this month cubic meters

Meter reading last month cubic meters

Consumption this month = cubic meters

Total Amount of Consumption Rupiah

Meter Maintenance Fee Rupiah

Administration Fee Rupiah

Water bill this month Rupiah

Unpaid water bill as of last month * + Rupiah

Penalty * + Rupiah

TOTAL WATER BILL DUE = Rupiah

If the unpaid water bill last month has been settled, the amount due will only be the water bill for this month .

Prepared by

Secretary Meter Reader


Customer Address

Social Residential Commercial

Con

sum

ptio

nAm

ount

Due

THIS IS NOT A PROOF OF PAYMENT.

Distribution: 1 – Customer; 2 – Treasurer; 3 – Stub File




OFFICIAL RECEIPT

Received from

Customer Account No.

Rp

In payment for

Water bill

Water Bill # Water Bill, Curren

Received by

Treasurer

Date Received

1 - Payor 2 - Bookkeeper 3 - Stub File

LEGEND:RA Rekening Air or Water Bill

Penalty Others


PAYMENT VOUCHER

Paid to Date

Amount

In payment for

Payroll for January 2009

Salaries

Less: Collection of loan to employees

Net cash payment

Accounts Charged Amount

Salaries

Advances to Employees

Total

Prepared by:

Treasurer

Approved by:

General Manager

Payment received by:

PV No. 09-01-8

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SUBSIDIARY LEDGER

Account Name: Prepaid Rent

Payee:

Date Particulars Reference Debit Credit Balance

Note: See also Exhibit 12 Adjusments Guide

Ministry of Public Works National Development Planning Agency

multi-village pooling project in indonesia: handbook for community

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