The major purpose of the study was to undertake an investigation on major problems of financial utilization in primary schools of North Wallo Zone and thereby to provide possible recommendations to the concerned bodies. To achieve this goal descriptive survey method was employed while multistage cluster random, purposive and available samplings were applied. The sample size of the study was four heads of woreda education offices, four woreda finance and economic development office documents and 16 primary schools i.e.16 principals, 16 vice principals and 48 members of the kebele education and training boards were incorporated. Besides, descriptive statistical method of data analysis was implemented i.e. the data obtained by the questionnaires were analyzed using percentage and the data obtained through interview and document reviews were also used to cross-check the findings by the questionnaires for triangulation purpose. It was found that the schools were financed by the government, the community, the schools' internal revenue and non-governmental organizations. Out of which the first took the lion's share: even from which the great majority is consumed as salary of teachers. The results of this study also indicate that block grant is not yet allocated on the basis of the standard set while schools are collecting revenues with legal receipt and directly utilizing without transferring to woreda finance and economic development offices as a means of motivation. Besides, financial rules and regulations are not fully available in schools and school principals are not qualified in principalship and schools' financial practices were in a problem to apply appropriate financial utilization while woreda educational experts seem have no expertise to school finance and it becomes a barrier to supervise schools concerning financial utilization. The study also reveals that there had been little provision of trainings. Moreover, KETB members are in a great difficulty to manage three schools on average within a given kebele. With respect to monitoring and controlling mechanisms/ most schools do not have saving accounts and ....... auditing is rare and irregular, and opens room for unnecessary wastage. Hence, KETB members should be substituted by PTA and both short-term and long-term trainings should be provided to financial personnel of schools. Finally, it would be better to x ' supervise and audit financial utilization of primary schools regularly in an organized way.

A Thesis Submitted to the School of Graduate Studies, Bahir Dar University In Partial Fulfillment of the Requirements for the Degree of Master of Arts in Educational Planning and Management