Find below the write up by your classmates on this week thread discussion where he wrote about Financial Mismanagement and Fiscal Sustainability in Virginia Higher Education. Meanwhile, read your classmate write up on this issue and interact effectively. Identify areas you agree, disagree as well as area that needed more clarity. Endeavor to use peer reviewed articles within the past five years to back up your information. Moreover, you might check areas that may be similar to your ideology. Please include all in text citations and minimum of three references. However, this week we selected an organization and management, or business-related topic based on our area of interest.

Find below classmates writes up and advice accordingly: *You must include a minimum of 4 scholarly sources to discuss the problem.

Discussion: Financial Mismanagement and Fiscal Sustainability in Virginia Higher Education

Problem Statement

The general problem to be addressed is the lack of fiscal discipline in higher education institutions, resulting in the rising operational budget deficits and long-term instability. Multiple public universities in Virginia - including Radford University, University of Mary Washington, and Virginia University- have been identified in the public audit by the Joint Legislative Audit and Review Commission {JLARC} (2024). These institutions were flagged for fiscal viability risks due to declining enrollment, increased debt obligations, and structural budget inefficiencies. Despite these warning signs schools of higher education continue to expand their capital assets, debt, and student programs without a proper forecast of demand and economic viability and risk closure (Tinkelman, 2024). The enrollment cliff has been a challenging, but often neglected forecast since 2018 (Boyd-Swan et al., 2024). The specific problem to be addressed is the potential consequences of fiscal mismanagement in Virginia's higher education institutions, resulting in weaker institutions and providing less opportunities for students.

Identify Sample

The proposed sample would include four-year post-secondary schools in Virginia utilizing publicly available financial data from the State Council of Higher Education for Virginia (SCHEV) as well as collegiate budgetary records. Public records can also be discovered through open records laws and the Freedom of Information Act (FOIA). While data from public institutions is expected to be readily accessible, information from private colleges would be more limited. The data would consist of the most recent ten-year period and compared based upon the enrollment funding models. This would be a mixed methods study, interviewing chief financial officers (CFOs) to ascertain why and how was or was not the institution following a path of fiscal discipline.

Discuss Research Paradigm

This study utilizes a post-positivist paradigm that supports the use of objective financial data, while acknowledging the influences of politics, stakeholder preferences, and leadership dynamics. The post-positivist paradigm allows the use of statistical tools to test the hypotheses while realizing that the context is important to ascertain fiscal discipline. Utilizing this paradigm would help address the dichotomy that exists between academic and financial logic (Altalibi, 2024).

Discuss Bias

Potential bias stemming from the self-reporting of financial data could mask the underlying issues and the gravity of deferred financial obligations. The underlying causation would inevitably be shifting the blame to the chief financial officer, or to the President, or to the governing body without empirical evidence that answers why. To address the quantitative bias issues, one would utilize standardized financial ratios and trend analysis.

Provide Leading Theory

Applying the theoretical framework of stewardship theory, an institution of higher learning can shift the focus from egocentrism to the prioritization of the long-term interests of the school. This would mean staff must possess intrinsic motivation either for a commitment to the ideal of what the school stands for, or as a Christian and to work as a Champion for Christ. Realizing that all individuals are not altruistic all the time, the agency theory should be utilized and paired within the context of expansionism, deferring the responsibility of debt service, and the personal benefits of risk-taking with others capital.

Biblical Integration

"The thoughts of the diligent tend only to plenteousness; but of every one that is hasty only to want" (King James Bible, 1769/2017, Proverbs 21:5). This verse presents the wisdom of strategic and thoughtful planning for the long-term survivability of a college or university. This verse shows that quick non-deliberate action seldom yields fruit. "So then every one of us shall give account of himself to God" (King James Bible, 1769/2017, Romans 14:12), which can be applied to presenting the truth to the board or the college president regardless of the temporal outcome. In 2 Corinthians Paul discusses the fiduciary responsibility of handling others finances. He not only wants to appear just before God, but he also wants to be just before man (King James Bible, 1769/2017, 2 Corinthians 8:20-21).

References

Altalibi, G. M. (2024). Financial sustainability in higher education institutions: Accounting perspective. Educational Administration: Theory and Practice, 30(5), 1421-1426. https://doi.org/10.53555/kuey.v30i5.3102

Links to an external site.

Boyd-Swan, C., Reynolds, C. L., & University, A. I. for S. R. at B. (2024). How are institutions positioned on the brink of the enrollment cliff?: Evidence from Ohio. EdWorkingPaper No. 24-1114. Annenberg Institute for School Reform at Brown University. https://openurl.ebsco.com/contentitem/eric:ED671113?sid=ebsco:plink:crawler&id=ebsco:eric:ED671113&crl=c

Links to an external site.

Joint Legislative Audit and Review Commission. (2024). Emerging issues in higher education finance: Presentation to the General Assembly. Commonwealth of Virginia. https://jlarc.virginia.gov/pdfs/presentations/Rpt746.pdf

Links to an external site.

King James Bible. (2017). Cambridge University Press. (Original work published 1769)

Tinkelman, E. (2024). Budgeting in higher educationA mixed model approach. Journal of Applied Professional Studies, 5(11), 1-14. https://research.ebsco.com/linkprocessor/plink?id=8a22c276-6ed9-3f6c-9f84-93629130e219