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Board reviews clearing-account correction and plans a budget amendment after unpaid invoice
Summary
Trustees were told a duplicate federal-tax withdrawal left the clearing account short and several older grants show small overspends; administrators plan a proclamation now and a formal budget amendment next month to cover roughly $13,248 in literacy-related shortfalls and a $15,312 past-due co-op bill.
The Lincoln K-12 Schools board heard a finance update on internal accounting adjustments and a recommendation to post a proclamation and adopt a budget amendment next month.
At the meeting, a staff member (S5) said the district experienced a duplicate federal-tax withdrawal of roughly $9,000, from which penalties and fees left the district with about $7,000, creating a clearing-account shortfall of roughly $2,005–$2,008. "It came out over $9,000 came out for federal taxes as a duplicate payment," S5 said, and asked the board to approve an internal journal voucher to move funds from the general fund to restore the clearing account.
S5 also outlined several small discrepancies in older local grants and one larger shortfall in the literacy grant portfolio. Sample figures S5 cited included $962 charged to old Title I grants, $179 tied to gifted-and-talented funds, $48.66 on a PAX-related line, and a net set of small reconciling entries (about $100.07). On the larger literacy-related balance, S5 reported approximately $13,248 would need to be reimbursed from the general fund to clear prior-year charges. "That was the big one — our literacy grant ... it was $13,248," S5 said.
S5 also reported a previously unpaid $15,312 invoice from Great Divide (co-op specialist) dating to last year. After consulting OPI and the county superintendent, S5 said operating reserves could be used to cover payroll and other timing gaps if the board approves the process. S5 told trustees the district will first post a proclamation online and on the public board posting and then bring a formal budget amendment for approval at the next meeting. "We have to do proclamation first, and then next month we'll do the amendment, the actual amendment," S5 said.
Clerk S7 and staff said the district's finance team is reconciling old project codes and consolidating obsolete local grants to simplify future accounting for the new clerk. S7 confirmed the administration will present the required amendment and explanatory materials at the next meeting to ensure public notice and audit trail.
The board did not take a final vote on the amendment at this meeting; trustees were asked to review the spreadsheet and supporting documents before the next meeting.
Ending: The district will post a proclamation as required and return next month with a formal budget amendment to authorize reimbursements and reconcile the clearing account. No final vote on the amendment was taken at this session.
