2.4. Site Financial Reporting

Site financial reporting encompasses all revenues, expenses, and deposits made at the site or cluster level. Diligent recording of cash flow is crucial for monitoring company finances, as well as accountability at each level of the hierarchy. Routine audit procedures carried out by the cluster in-charge and state in-charge are advisable.

2.4.1. Fuel Expenses

Fuel expenses incurred at the plant level must be logged and approved for reimbursement (this can be done through the field agent application). This allows fuel use and efficiency to be monitored, and pilferage to be automatically flagged.

Typically, fuel is purchased from stations with an established relationship with the company. The field agent may then upload an image of the receipt, along with other information such as the generator’s meter reading at the time of the purchase. Once the registered expense has been checked and verified by the head office, costs can be reimbursed to the agent who made the payment.

2.4.2. Other Expenses

Other expenses include fixed monthly costs such as land lease and salaries, and variable costs such as maintenance. These are input into MCOMS for creating routine financial reports.

2.4.3. Cash Flow

Cash collected from customers must eventually be deposited in the company’s bank account. The total collection is updated automatically every time a customer makes a payment; cash deposits to the bank are logged by field agents, and verified and approved by the head office; the remainder is tracked as cash in-hand at the plant.

Each company will have its own guidelines about how often field agents should make deposits, and limits on the permissible cash in-hand. MCOMS can be scheduled to push notifications to designated agents to keep these operations on time.