The major purpose of this study was to assess factors that affect Educational financernutilization in Oromia Regional State Education Bureau, with some selected woredas .Inrnorder to attain the objectives of the study; a descriptive survey method was employed.rnThis study was carried using purposive and random sampling technique. Data wererngathered through questionnaire, interview and document analysis and analyzed usingrnpercentage, weighted mean and ranking the frequency of responses. The findings of thernstudy revealed that the degree of participation professionals in budget preparation wasrnfound to be low. In addition, the absence of accounting department within the educationrnoffices at woreda level highly affected the timely utilization of Educational finance.rnCapital budget allocations at woreda level were insignificant and the recurrent budgetrnallocated to woredas was underutilized due to lack of implementation capacity.rnInflexible financial rules and regulations, lack of managerial capacity of WEO, poorrnsystem of record keeping and reporting and lack of qualified personnel at WEO werernmajor factors that affected the educational finance at woreda level.rnAt Regional Education Bureau level, capital budget allocations were made based onrnpolitical commitment that affects planned activities of the Bureau. Budget execution hasrnpractically been constrained due to lack of timely release of budget, high turnover andrntransfer of personnel handling finance operations. Furthermore, inadequacy ofrnqualification, experience, training, poor organizational structure, inadequate financialrndecentralization, delay of purchasing, pre- conditions of budget release, poor recordrnkeeping and financial reporting were among the factors that affected the utilization ofrneducational finance.rnTo alleviate these prevailing factors that affect educational budget preparation and itsrnutilization, it is recommended that the WFEDO, with regional BOFED has to encouragernthe participation of educational professional in order to prepare reasonable budget,rnreviewing the existing accounting practices to make organizational structure adjustmentrnparticularly for large sectors like Education offices in woredas. Woredas have to improverncapital budget allocation and building the capacity of WFEDO experts through trainingrnfor better handling the operation of financernFor capital budget allocation that has been made based on political commitment, It ISrnrecommended that the Bureau has to review the capacity of budget before entering intorncommitment and also find other alternative resources. The Bureau should encouragernprofessionals to participate in budget preparation and develop incentive mechanism tornmaintain personnel undertaking financial operations. In addition the Bureau has tornmake periodiC financial pelformance evaluation for beller pelformance