By T. Scott Boatright
In the midst of financial struggles that have resulted in Lincoln Preparatory School (LPS) making $675,000 worth of personnel cuts and salary reductions in order to meet compliance requirements for the bond investors who paid for the new school’s campus, LPS Executive Director Rashid Young on Monday announced a series of strategic operational and financial improvements aimed at strengthening the school’s long-term financial stability.
“Following a comprehensive review of the school’s finances and organizational structure, Lincoln Preparatory School has retained 4th Sector Solutions to provide financial management services,” the press release read. “The decision follows the completion of a preliminary audit of the 2024-25 fiscal year, which identified concerns related to financial management practices and internal financial controls that warrant corrective action.
“While the audit process has not yet been finalized, the preliminary findings indicate that many of the financial challenges facing the school developed over several years, highlighting the need for enhanced financial oversight and stronger internal controls.”
Requirements to meet compliance with the bond investors include maintaining a certain debt service coverage ratio (a formula that weighs cash flow against debt obligations) and keeping at least 45 days’ worth of operating expenses in cash on hand.
Young’s press release said the school has partnered with 4th Sector Solutions to oversee financial operations, strengthen accounting practices, improve budgeting procedures and implement additional safeguards to ensure greater transparency and accountability. The financial review also prompted an evaluation of the school’s organizational structure that revealed several noninstructional positions with responsibilities that duplicated services already being provided through existing contractual relationships.
Those positions have been eliminated for the 2026-27 school year. Employees affected by the restructuring were notified on May 22 and were encouraged to apply for other available positions within the school.
Young’s press release also said school administration continues to review historical compensation practices, including certain bonus payments, as part of the broader financial assessment and that the review remains ongoing.
“The preliminary audit gave us an opportunity to identify areas where we can improve our financial operations and strengthen the long-term future of Lincoln Preparatory School,” Young said in the press release. “Our response has been swift, thoughtful and focused on accountability. By partnering with 4th Sector Solutions and making strategic organizational changes, we are ensuring that more of our resources are directed where they belong — supporting our students, our teachers and classroom instruction.”
Young stressed that what the press release called the school’s financial improvements are intended to position Lincoln Prep for continued growth rather than signal instability.
“Families should know that Lincoln Preparatory School is strong, and we are building an even stronger foundation for the future,” Young said. “These improvements are about being proactive, transparent and responsible. We are excited about the positive momentum we are already seeing as we prepare for the new school year.”
The press release stated that school leaders report encouraging enrollment activity, renewed enthusiasm among faculty and staff, and continued community support as preparations for the upcoming school year continue.
“Every decision we make is guided by one question: ‘How does this benefit our students?'” Young said in the press release. “As we celebrate 10 years of serving this community, we are committed to building a school that is financially sound, academically excellent and positioned to provide outstanding opportunities for students for many years to come. I truly believe our best days are ahead.”
The press release also indicated that the LPS administration will continue implementing the recommendations of the ongoing preliminary audit while maintaining open communication with families, employees and stakeholders throughout the process.
