The main function of the Financial Regulation Area (FRA) is to implement the provisions of the Concession Agreements (CA) that pertain to the financial operations of the Concessionaires.
The FRA is responsible for regulatory accounting, rate adjustment, and economic functions of the MWSS RO. It also conducts the regular, independent financial audit of the activities of the Concessionaires and monitors the submission of audited financial statements.
Under the FRA are two departments: Tariff Control and Monitoring Department (TCMD) and Financial Audit and Asset Monitoring Department (FAAMD).
The functions of the TCMD are to calculate the rates charged to customers for water and wastewater services and monitor the Concessionaires’ compliance to them. The TCMD monitors key economic and financial indicators that affect the rates and other financial aspects of the CAs; determines and calculates Extraordinary Price Adjustment (EPA); and reviews and monitors standard rates, as well as the Concessionaires’ Appropriate Discount Rates.
The FAAMD performs regular and methodical audit, analysis, and evaluation of the Concessionaires’ financial information, cost allocation, and other pertinent accounting practices.