Lincoln County reports $120,000 rise in state funding; new school food program shows high participation but needs inventory accounting

The Lincoln County Board of Education heard a financial update in which staff said state QBE funding is $120,000 higher than at the same point last year and outlined early-year expense drivers.

A district finance staff member told the board the July financials show higher revenues tied in part to the state-funded teacher raises and that early-year expenses are elevated because of contracted pupil services, web-based license fees, CTAE and curriculum startup costs and annual insurance payments.

The presentation included preliminary results from a newly implemented School Food Service program. "We had a total of 35,000 meals served in August of '24," the staff member said, adding that this figure reflects higher student participation. The staff member cautioned the board that the statements did not include an ending inventory valuation, which made the month look like a net loss on paper.

"We did not have time to calculate an inventory number," the staff member said. "That food cost should probably be reduced by the ending inventory—we just don't have that number." The staff member estimated the program likely has "upwards of $15,000 to $20,000" in inventory on hand and said that once inventory is recorded the food service position will probably be net positive.

The staff member also noted accounts receivable timing related to 10-, 11- and 12-month employees and described the balance sheet as mainly cash. Board members asked clarifying questions about funding sources for overnight trips recorded in the consent agenda and about the food-service accounting processes; staff said they will clean up inventory records and present corrected numbers next month.

The board did not take a separate vote on the food-service program; the financial report was presented as part of the regular agenda.