This paper examines the collaborative relationship between principals and School Governing Bodies (SGBs), and how this impacts on the management of financial resources in public schools. In South Africa, educational trends such as decentralisation, the shift of responsibility in roles, community involvement, building of partnerships and accountability in schools resulted in changing associations and patterns of interaction amongst participants in schools. Collaboration may be viewed as central to each of these trends. As principals and SGBs grapple with the demands of managing their schools' financial resources efficiently and effectively, it is important to reflect on the collaborative relationship that society expects of them. Principals are required to cultivate processes of authentic collaboration in order to empower SGBs on school governance. It is thus imperative for schools to initiate and maintain a collaborative relationship between principals and SGBs, through mutual trust, teamwork, collaborative decision-making, open-communication and co-operation. Using a qualitative research paradigm, we determined the perceptions and experiences of school governors on their collaborative efforts in managing the school financial resources. This study revealed, amongst others, that many SGB members were unclear about their roles and functions which resulted in serious conflict situations and accountability implications.