Financial is one of importance recourses for operational school. Moreover, has been applicated the School-Based Management (SBM) which allocates education fund directly toward school. Every school faces lot of challenges and has to compete toward others school in locally, nationally even globally. That why needed good management at school and good management needs a professional Head Master (HM) and the professional HM has to be able to manage the financial school as well. Consequently, the writer of this thesis intends to study more about the topic. Which the object of the study in SMA.N.3 Madiun east java School Years 2005-2006 The target of this writing is to know the application of the financial management in SMA.N.3 Madiun East Java School Year 2005-2006 and to know the HM role as a school manager in determining the school policy as well To reach the target, the writer chooses qualitative study with the phenomenological approach. In collecting data, the writer uses directs observation at the school, interview, and using documentary. After data is gathered, the writer analyze it by critical analysis method to reach a comprehensive conclusion Based on the data presentation, it is concluded that the application of financial management in the perspective of school based management in SMA.N3.Madiun school year 2005-2006 has run well. It is showed by the accountable of financial statement by determining the general function of management. The first Planning, to forecast the activity of the school budget from the school program will be done. The second; Organizing, it is organizing people which includes the activity to group, to arrange, and to divide the work toward functionaries of school. The third Actuating, to activate physically of the planning and organizing the HM needs to lead, to motivate, to develop, to concell, and to communicate. The fourth; controlling, to make sure that the activities of planning, organizing, and actuating have run well the HM has to check, to report and to account the work. While graduating of SMA.N.3 Madiun can continue their study at some others nations by showing their qualified graduated sertificate, which it is matching with the graduated of education program in the others countries, and The HM role in determining Financial management has brought SMA.N.3 Madiun becomes a National Reference School (NRS) having international standard. Based on the written above it is important for the HM to be more active in attention the financial management at his school and keep on going his creative idea to reach better education quality. May Allah bless our good deeds which honesty