Efficient and effective financial resource utilization in schools is base to improve qualityrneducation. However, inefficient utilization or implementation of financial resourcesrntends to be the major challenges of the education system in Ethiopia. The main objectivernof the study was to investigate the financial resources utilization challenges in primaryrnschools of Damot Pulassa woreda in SNNPR for this purpose, both quantitative andrnqualitative approaches were employed. The methodology employed was descriptivernsurvey which was carried out questionnaire because of its suitability for survey study thatrnhas large size of respondents in the five random sample primary schools. The data wererncollected from both primary and secondary sources; the main instrument wasrnquestionnaires; in-depth interviews, focus group discussion and document review. A totalrnof 150 respondents from five schools, 10 key informant interviews and 5 focus grouprndiscussions with 35 participants were conducted. The study discovered that the educationrnbudget come from the government, School internal income, community contribution andrnNGOsâ€™ support were the main sources of education budget in study schools. The studyrnalso found that the budget preparation, implementation and evolution processes lackedrnthe participation of stakeholder, lack of financially skilled man power, lack of relevantrntraining, absence of internal and external auditing activity, delay in releasing budget,rninterferences of school principal, engagement of school management on different dutiesrnwere the major challenges of financial utilization in Damot Pulasa woreda primaryrnschools. In conclusion the schools lacked active participation of stakeholders, capablernhuman resource in financial resources management, practicing financial rules andrnregulations. Hence, it is recommended that the WEO and schools should take measuresrnto improve the participation of stakeholder, employ financially skilled manpower, budgetrnof school should be released on time, schools should report budget performance to thernconcerned bodies, regular auditing should be carried out by the woreda education andrnfinance office.