Abstract:
Efficient and effective financial resource utilization in schools is a base to improve quality education.
However, inefficient utilization of financial resources tends to be the challenges of the education
system in Ethiopia. The main objective of the study was to investigate the challenges of financial
resources utilization in Government Secondary schools of East Harare zone, Oromia Regional State.
The methodology employed was descriptive survey design for the study. It was conducted in twelve
secondary schools selected by simple random sampling. Data were collected from primary and
secondary sources through questionnaires, interview and document reviews. Questionnaires were
prepared and administered to 48 school leaders (12 principals, 12 supervisors, 12 PTA chair persons,
12 vice principals) and 34 school finance officers’ selected by availability sampling techniques. 12
woreda/administrative town finance office auditors were interviewed and the reviews of necessary
documents were made in all sampled secondary schools. The data collected were analyzed by using
descriptive statistics (percentage, mean, standard deviation and weighted mean) and t-test by
computing the data on SPSS version 20. The data gathered through interview and document reviews
were analyzed qualitatively for the purpose of triangulation. The study found that the budget planning,
and implementation processes without the participation of stakeholder, lack of financially skilled man
power, lack of relevant training, internal and external auditing not conducted and lack of financial
audit guidelines. The study also discovered school finances were not efficiently and effectively used to
attain its intended goal, poor school financial record keeping and financial rules and regulations. In
conclusion the schools lacked active participation of stakeholders, incapable human resource in
financial resources utilization, wrong ways of utilizing financial rules and regulations which implies
school finance were corrupted by school leaders and finance officers. Hence, it is recommended that
the school principals should take measures to improve the participation of stakeholder, woredas
employ financially skilled manpower, schools had better to report financial performance to wored,
regular auditing should be carried out by the woreda/town education and finance office and the
woreda finance office should train the school finance officers and administrators and give
professionally support to secondary schools. Furthermore, Wereda Finance Office and
woreda/administrative town Education Office had better to give short term training, direction and
guidelines in the cases that wherever short comings and gaps observed in schools finance utilization.
