There are two parts in this study. One is the school financial system and the other one is teacher appointment process of school-based management schools. This study used survey and group interview to collect data. At this first-year project report, we provide the contents of SBM, and the factors responsible to calculate the budget of school financial equations and teachers' perceptions of the teacher appointment processes in implementing SBM. These finding will be as the basis of the following study in the second year.