The purpose of this study was to investigate practices of school financial resource management inrngovernment secondary schools of Adama City Administration. For this study descriptive surveyrnresearch design was used. The study was conducted purposively in three selected government secondaryrnschools since the other four secondary schools were started their operation in the last two to threernyears. Methods of research utilized in study were mixed of qualitative and quantitative approach. Thernparticipants of the study were 139 respondents and census method was utilized to collect data from thernpopulation. A total of 135 questionnaires were disseminated to respondents (Principals, Vice principals,rnKETB members, PTA members, Departments, Accountants and other finance workers). Out of these 126rn(93.33%) were correctly filled. In addition to this, qualitative data were gathered from sevenrnrespondents via structured interview; and a secondary source was collected from official documentsrnrelated to the study. Then the data was tabulated, organized and analyzed using descriptive statisticsrnsuch as percentage, mean and standard deviation. In addition, t-test and P-Value was used to analyzernthe presences of significant differences between responses of management organs and departmentsrngroup. Furthermore, interview and open-ended items of the questionnaire were analyzed qualitativelyrnusing narrative form. Accordingly, the findings of the study revealed that low degree of participations ofrnKETB on budget preparation, in sufficiency block grant annual budget, underutilization of speciallyrnRBA budget, absence of reporting internal income and student parent contribution were identified.rnAmong the majors challenges to finance managements of the school understudy; problem of not usingrncomputerized accounting system, absence of well-organized finance record keeping system, absence ofrninternal auditing system, lack of adequate skilled accountants, purchasing delay and purchasing out ofrnschool demand and quality problems of material purchased, and absence of human resource on certainrnjob title were identified as severer factors. Thus, it can be concluded that Absence of participationrnprivate investor, NGO and community other than parent of student in financing school, absence ofrntraining leads to weak management of educational financial resources, not submission of financialrnutilization report leads schools to improper utilization of budget and mismanagement schools financialrnresource, Weak controlling system of budget utilization and finance recording system, skill gap onrnbudget plan and utilization and lack of internal controlling and monitoring financial resource system..rnFinally, to improve the situation, it was recommended that participating private investor, NGO andrncommunity other than parent of student in financing schools, giving orientation for KETB members onrntheir responsibility, filling perception difference gaps through creating awareness and transparency,rnoffering training, developing, controlling and monitoring system via reporting and having internalrnauditor, giving Technical support via supervision, using computerized accounting system and full fillingrnhuman resource gaps of the school, decentralizing the black grant budget and conducting furtherrnresearch were forwarded.rnKey words: Financial management, Practices, Challenges, Government secondary school,rnfinancial utilization