Financial management practices in the faith based areas at large and in the churchesrnspecifically is not the recent development. Despite its age, the financial management practicernhas been challenged in the church because of two main reasons; the first is the source of incomernarise from volunteers, there is a thought not to monitor the resources with adequaternprofessionals since it is seemed to be holy and the second is the sacred and secular divide thernchurch in which separates the financial management to the secular one and seen as it is arnprofane. The existence of the aforementioned challenges on one hand and the ever growingrnresources of the Ethiopian Evangelical Church Mekane Yesus (EECMY) on the other hand arernthe two paradoxes. The study assessed the financial management practice of the EECMY forrnadministering its financial resources within its structure. Population of the study consists of thern28 church units (synods) and 7 joint programs of the church, total of 35. The study wasrnconducted based on purposively selected 15 church units and 5 joint programs. Non-probabilityrnsampling of purposive sampling method was used to draw samples from the population.rnQuestionnaire was distributed to 25 leaders and 25 finance heads and chief accountants of thernsampled units; interview was conducted with two higher officials of the church; secondary datarnsuch as consolidated financial statements, financial manual, and constitution of the church werernused for analysis. The elements of financial management such as accounting records, financialrnplanning, financial policy and organizational philosophy, financial reporting and monitoringrnand internal control activities were assessed in order to study financial management practice ofrnthe EECMY. The data was analyzed by using SPSS through descriptive statistics and the findingrnof the study indicated that the major challenges of the financial management practice of thernEECMY are absence of cash flow statement for reporting, financial policy weakness in usingrnmodified cash base instead of following international and nationally accepted financial policies,rninsufficient number of professional accountants, unclear revenue source and fund uses in thernlower level structure, lack of periodical comparison of plan versus actual budget, risk of notrnaudited financial statements, inconsistency with ethical values in few areas, lower riskrnassessment duties, absence of internal audit activities, and absence of account reconciliations.rnThe study recommends adoption of new financial standards, introduction of cash flow statement,rnaddressing of risk assessment elements of the church, introduction & strengthening of internalrnaudits, and concerned body of religious organizations and financial policy and standard settingrnbodies in Ethiopia to establish institution that confirms churches are operating with integrity,rnaccountability and transparency