LEXINGTON, Ky. — Financial concerns within Fayette County Public Schools (FCPS) have intensified after two finance department employees were placed on paid administrative leave as multiple investigations continue into long-standing accounting issues.
Superintendent Demetrus Liggins announced Thursday that discrepancies in financial practices—some dating back as far as 2008—have raised serious questions about the district’s fiscal health.
Decades-Old Financial Issues Uncovered
According to Interim Chief Financial Officer Kyna Koch, newly uncovered inconsistencies in accounting records, invoicing, and revenue tracking suggest the district’s financial condition is worse than previously reported.
Koch revealed that inaccurate financial reporting may have significantly overstated revenue projections while masking deeper budget problems. As a result, FCPS now faces a much smaller fund balance than expected.
“I do not have confidence in the accuracy of the financial information previously provided,” Koch said, highlighting the urgency of reassessing the district’s finances.
Short-Term Loan May Be Needed
With financial uncertainty growing, Koch has recommended that the district consider securing a short-term loan to maintain operations until property tax revenues begin flowing later in the year.
Officials also acknowledged that key financial procedures—including contract compliance, spending guidelines, and reporting deadlines—have not been consistently followed over the years.
Multiple Investigations Underway
FCPS is currently undergoing several audits and external reviews to determine the full extent of the financial mismanagement. While no criminal wrongdoing has been confirmed, district leaders say the findings so far are “deeply concerning.”
In addition to internal reviews, the district has hired Weaver and Tidwell to conduct an independent audit. Meanwhile, Allison Ball is also leading a separate state-level investigation.
Superintendent Liggins emphasized that identifying the root cause of the financial breakdown is now a top priority. “The time is now to take control and correct these issues,” he said.
Budget Crisis and Leadership Scrutiny
The financial turmoil follows the district’s earlier disclosure of a potential $16 million budget shortfall, which shocked stakeholders after it was revealed that reserve funds were significantly lower than anticipated.
Adding to the controversy, a prior investigation into Liggins’ leadership found that he failed to meet certain policy and governance requirements during the unfolding budget crisis.
Former Budget Director Raises Allegations
The situation is further complicated by a lawsuit filed by former budget director Ann Sampson Grimes, who claims she was placed on leave after warning leadership about worsening financial conditions.
Her attorney, Brandon Voelker, alleged that district leadership ignored critical warnings and attempted to shift blame.
According to the legal claim, Grimes repeatedly raised concerns in 2024 that the district’s financial situation was deteriorating and would continue to worsen.
What Happens Next?
District officials say efforts are now focused on gaining a clear and accurate understanding of FCPS’s financial standing. However, with audits still pending and investigations ongoing, the full scope of the issue remains unclear.
Despite the challenges, leadership insists corrective measures are underway to stabilize the district’s finances and restore public trust.