Stages of CPS Installation


During this period, qualified personnel being hired are given their respective assignments; the forms are printed or reproduced to facilitate the installation of the system and procedures; and the personnel are trained. At the same time, the basic billing and collection procedures are introduced and implemented.

CPS Phase - I

CPS Phase I covers the following:

General Accounting and MIS---describes the flow of transactions and the preparation of the required financial and accounting records and reports;

Chart of Accounts- provides the prescribed accounts to be used to record the various transactions of the water districts to ensure uniformity of reporting;

Billing- describes the systems and procedures that account for the quantity and amount of water sales, penalty and other charges, billing adjustments, meter reading procedures and general maintenance of customer records;

Collection- describes the systems and procedures that account for and safeguard all collections and provide an accurate basis for determining the collection performance of the water districts;

Disbursements---describes the procedure that takes up/recognizes expenditures and liabilities of the water districts and the manner they are settled or paid;

Other Transactions- describes the procedures for taking up in the books nonrecurring transactions such as the recognition of depreciation, bad debts, loan accounting and adjustments; and

Budgeting- describes the procedure on how to develop/prepare a realistic and workable budget.

During this period, the water district management and staff are expected to give the maximum assistance and cooperation to the CPS representative to ensure full coverage of the above activities.
Thus, at the end of the CPS I Installation, it is expected that:

The water district personnel should already be familiar with and adept in the accomplishment of the different forms and records, billing and collection procedures, and maintenance of customer accounts;

The required reports such as the balance sheet, income statement, cash flow and the monthly data sheet are prepared; and

They have working knowledge of budget preparation.

Follow-up (Review and Evaluation)

A review of the system and procedures of the water district is done sometime after the CPS I installation to ensure adherence to the standard system and procedures.

Deviations noted, if any, are corrected.

Follow-up is also done to modify the system and procedures to suit the expanded organizational structure and activities of the water districts.

Oftentimes, follow-up is undertaken to remedy deficiencies brought about by personnel movement, retirement, resignation, etc. and other business management-related problems that could affect the operational efficiency of the water district.

CPS Phase - II

CPS Phase II covers the following:

Inventory--describes the procedure used to monitor receipt and issuance of materials and supplies and to maintain an accurate inventory record;

Fixed Assets (UPIS)- describes the procedure used to account for and monitor the status of water district's physical facilities;

Payroll- describes the forms and the records to be maintained with regards to the employees, earnings and earned leave credits;

Purchasing- describes the procedure of procurement and other acquisitions through purchases; and

Construction/Work Order- describes the procedures for monitoring and controlling project costs and construction works in progress.