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Some problems can be solved, however, if an appropriate accounting system is designed. The basic accounting model is a fund accounting model used in the Netherlands, the United Kingdom (UK) and the US. However, there are some differences. One, a government is a not for profit organisation. This has implications for the type of information and the order. Secondly, the purposes for which you report are different and finally the basic structure of urban local government finance is different.

Local governments are free to use funds for statutory purposes such as street lightening, etc. Some resources can be spent by law or government order, or because of a contract. Support from higher levels of government has to be spent in a prescribed manner. These expenditures are reported in a special revenue fund. Because the envisaged infrastructure investment project may be the most important thing for the whole municipality and it may require the creation of a separate fund, which is almost run as a private corporation. The books show what is available for expansion and one can follow closely what is available for daily operations.xi The recommendation for Indian local governments is to set up the general fund and make it operate for the commissioner and councilors so that they have increasingly better information to monitor their budget for their existing responsibilities. The general fund shows you which funds are currently available and once the information on the fixed assets and long term debt are available the balance sheet can be produced.xii

Conclusions financial options for water, sanitation and wastewater

In general the public is interested in getting sanitation facilities, but not very much concerned about the treatment of wastewater or the necessary off plot sanitation facilities. This usually means a limited willingness to pay and a negative attitude towards involving private parties. Governments need to provide information to explain possible advantages of involving private partners if this is the way they want to go. Otherwise one risks delays in the implementation stage of the project because different stakeholders oppose implementation.

The two cases show an array of public, private, and civil society actors and individual households to take on responsibilities for the provision of infrastructural services. In the case of sanitation many developing countries have opted for on-site solutions such as sceptic tanks and pit latrines. In these cases it may be question of infiltration in groundwater or there may be a discharge to an open watercourse. Too often one finds uncontrolled disposal of the sludge and no institution taking the responsibility.

Secondly it can be learned that the degree of private sector involvement varies. It ranges from outsourcing in the public mode to a concession to a private firm or a user co-operative. However, also NGOs may play a role for example in Bangalore in activities like solid waste collection sanitation and public awareness programs. We have also learned that the link with some cost recovery system is extremely important. The underlying assumption is that people are willing to pay for water and other services if they know they will get them and that they will get good quality services. Only then there is a chance that a cash flow will be generated, which allows supplying the service on a

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