Evaluation Indexes for the Financial Management Status of Water Utilities

Abstract

 We examined and analyzed indicators of the financial management situation of water utilities. We have selected two indicators from each of the three perspectives of "people, goods, and money," which are generally considered to be important in the management of a business. We also looked at two more indicators for water receiving from the water supply, which was suggested to have an impact on the maintenance and management system in a previous study. The results show that the business condition worsens as the number of the water supply population decreases, and that many of the smaller utilities are unable to fully cover their expenses from water charges alone. In addition, it was found that larger utilities are more likely to reduce fixed assets and utilize outsourced staff to improve operational efficiency, while there is a significant variability among smaller utilities in their current status. In addition, the utilities that have implemented wide-area expansion and public-private partnerships have increased their business efficiency by increasing the ratio of contracted staff, and in particular, the utilities that have implemented wide-area expansion have seen a significant decrease in the ratio of water received, suggesting that although the objectives of the initial measures are reflected in the indicators, the management situation has not yet been significantly improved.