Abstract: This study aims to describe the process of budgeting and allocating free education funds in pesantren, systems and procedures for free education financial management in pesantren, and financial use of free education programs at pesantren in Al-Ikhlas Al-Faruq Bondowoso Foundation.The study design used a qualitative approach and a case study design. The results of the study show that the budgeting and allocation process begins with developing a Madrasah Budget Activity Plan to formulate all the needs to be implemented, financial management is centered on the foundation using a cross subsidy fund system, and the use of funds is adjusted to the Madrasah Budget Activities Plan which has been submitted and refers to the technical instructions for the use of education

Abstract: This article aims to describing the system of guaranteeing internal quality of schools to ensure that the quality of graduates is able to be competitive with other school outcomes. This study explains that guaranteed internal quality of schools should at least refer to the standards set by the government, namely the National Education Standards (SNP). The school strives to implement guaranteed internal quality, because the quality of output is influenced by the process of guaranteeing the internal quality of the school, the focus of the school in ensuring the quality and implementation of guaranteed quality to ensure school quality. Using interview techniques with the principal who aims to determine the policies implemented in ensuring quality, and make observations about the