Prudent Administration in the Finances of SDA Education Institutions: An Application of “A FAIR WILL” Concept

Abstract

This paper deals with the importance of prudent administration in handling the Lord’s financial resources. It specifically deals with how administrators envision and perform the utilization of money. Utilization of money in SDA educational institutions may or may not become a blessing to many people. It becomes a blessing when money is administered prudently to achieve the mission of the institution. However, it does not become a blessing when money is administered by feeling. Feeling with no definite standard of judgment at all is detrimental to the continued existence of the institution.
This article seeks to answer the question: “What standard of judgment should administrators use to administer the Lord’s financial resources prudently?” The author offers a standard of judgment for administrators for prudent administration. He calls it “A FAIR WILL” standard of judgment. The letter A stands for Administration (qualification); F is for Fund balance (adequacy); A represents Assets (quality), I is for Income (level of self-sufficiency), R is for Risk (minimum degree); WI stands for Working Investment (adequacy); L is for Liquidity (adequacy), and the second L represents Long-term self-sustaining funds (income-generating capacity). Together these letters represent the vision that administrators should develop and achieve in prudent administration of SDA institutions. The author invites administrators and those concerned with the development of this vision to teach “prudence in financial affairs,” not just by talking, but by doing it. After all, a sound financial administration does teach.