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Who We Are
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Prairie Bible Institute Launches New Operational Model November 5, 2007
At their semi-annual meeting in April 2007, the Prairie Bible Institute Board of Directors mandated the Institute’s administration to develop a financial and operational model that would see operational expenses covered by direct operational revenue. The basis of this mandate was the Board’s confidence in the belief that PBI needed to continue to offer creative programming for students who felt led to serve God. In the Board’s assessment, this exciting future was only possible if the operational model for PBI could be overhauled. The current PBI operational model is structured to access non-direct operational revenue (bequests, endowment interest, etc.) in order to meet basic operational expenses. It is the desire of the PBI Board to position the Institute’s operational plan so that the non-direct operational revenue sources can be used for increased student assistance as well as program and facility upgrading. On October 27, 2007 the PBI Board of Directors received the components of the model they requested earlier this year from the Institute’s administration. After reviewing the plan and making a number of modifications, the Board affirmed the principle directions of the plan and has commissioned the PBI President and his Cabinet to begin the plan’s implementation. “We have full confidence in the purpose and future of PBI but we believe we are required to be wise stewards of the resources we have. We believe that relying on the fluctuating revenue provided to us by our bequests and endowment interest in order to meet our operational needs was a risk that put us outside of wise stewardship. We also believe that the plan that is coming forward from our 2007 Annual meeting is a good plan and we have additional confidence in the ability of our Administration to successfully implement this plan,” Mark Maxwell, Chair of the PBI Board of Directors. The current operational plan assumes a total annual revenue stream (including donations and endowment interest) of approximately $8.5Million. The new model re-assesses the direct operational revenue (not including donations and endowment interest) at an annual total of approximately $6.7Million. Using this new understanding of the level of direct operational funding, the PBI Administration has “re-built” the operational expenses of PBI to come into line with this revenue. “Having received the directive from the Board of Directors in April 2007 to develop a plan for operations that eliminated our need for general bequests and endowment interest for operational expenses, I knew that we would need to do more than simply reduce our budget. We are so grateful for the generosity of our supporters. However we are convinced that we need to exercise wise stewardship of the money they entrust to us by reducing our dependency upon these funds to meet our basic operational obligations. This has compelled us to re-launch the operations of PBI.” “Our strategy in building the model was to accurately estimate our anticipated total revenue and then build a new educational system that fit within that amount of funding. It has meant that we have had to force our thinking to be “out of the box” in terms of considering how we can serve students best. We have had wonderful methods of serving students but we have had to rethink through the entire process and identify ways of functioning that are within the financial means that we have. I am excited about the confidence God has given to me that He is not yet finished with using PBI to help shape the world. PBI may look a bit different in the future but there are still many exciting and new educational options available at Prairie,” Jon Ohlhauser, President of PBI. Because of the magnitude of correction provided in the new model, the elimination of some of the current employee positions will be inevitable. The PBI Board of Directors and the Administration are committed to ensuring that current employees who are affected by the implementation of this plan will be well treated and supported in their time of transition.For more information about the items contained in the release please contact: President's Office Prairie Bible Institute Box 4000 Three Hills, AB T0M 2A0 Prairie is a leading Canadian centre of higher education for Christians. We equip students to achieve their life, ministry and career purpose to fulfill their role within the Body of Christ.
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