Abstract:
The objective of this study was to assess the practices and challenges of financial resource
management in secondary schools of Bako Tibe Woreda, of west Showa Zone. The specific
objective of the study were to find out the implementation of financial resource management in
accordance with the rules and regulations in the sampled secondary schools of BakoTibe Woreda,
to find out the major challenges that affect principals financial resource management practices in
the sampled secondary schools, and to suggest the mechanisms that helps to resolve the financial
resource management problems in sampled secondary schools. Descriptive survey research method
was employed with both qualitative and quantitative data analysis. Stratified, simple random and
purposive sampling techniques were employed. The sample size was 83 teachers, 11 school
leaders(four principals, 7 vice principals), eight PTA members (four Chairman and four vice
chairman), one woreda Education office head and one woreda finance office head with the total of
105 participants out of 218 study populations. The data gathering tools employed in this study
were questionnaire, interview guide as well as document analysis. The findings indicated that in
the sampled secondary schools, the principals implement financial resource management not in
accordance with financial rules and regulations. The major challenges facing financial resource
management in secondary schools included, lack of training regards to financial management,
shortage of budget, lack of clear school financial guidelines which resulted in violation of financial
rules and regulation while implementation, lack of skill and knowledge on financial management,
lack of school financial guideline, poor school financial planning; and lack of transparency on
school financial implementation, absence of system of accountability or inadequate controlling on
school finance (lack of internal auditing and inadequate external auditing), incompetency of school
administrative personnel in financial management, low participation of stakeholders in generating
school finance, and lack of experience in implementing school finance. To overcome the
challenges encountered, recommendation have been forwarded. These include: all concerned
bodies, such as Oromia Education Bureau, Zone Education Office, Woreda Education Office and
Woreda Finance and Economic Development being together should provide short and long term
trainings for the school governing bodies on the issues of financial resource management, closely
supervising, controlling school finance and should provide clear financial guidelines. Moreover,
school leaders should be responsible and accountable to ensure transparency and good governance
in the school, and develop the culture of team spirit and participatory approach among different
stakeholders
