Abstract:
The study is to assess practice and problem of the financial management in the Ambo secondary school. It financial resources within its structure the study were conducted based on purposively selecting Ambo secondary school. And probability sampling and Non-probability sampling of purposive sampling methods was used to draw samples from the population. Questionnaire was distributed to respondents and interview was conducted with higher officials of the school and finance and corporation office .data such as consolidated financial statements, financial manual, and constitution of the school were used for analysis. The elements of financial management such as accounting records financial planning, financial policy and organizational philosophy, financial reporting and monitoring and internal control activities were assessed in order to study financial management practice of them The data was analyzed by using statically packages for social science through descriptive statistics and the finding of the study indicated that the major challenges of the financial management practice of them are absence of cash flow statement for reporting, financial policy weakness in using modified cash base instead of following international and nationally accepted financial policies, insufficient number of professional accountants, unclear revenue source and fund uses in the lower level structure, lack of periodical comparison of plan versus actual budget, risk of not audited financial statements, inconsistency with ethical values in few areas, lower risk assessment duties, absence of internal audit activities, and absence of account reconciliations. The study recommends adoption of new financial standards introduction of cash flow statement, addressing of risk assessment elements of the school, introduction & strengthening of internal audits, and concerned body of religious organizations and financial policy and standard setting bodies in Ethiopia to establish institution that confirms schools are operating with integrity, accountability and transparency.
